Crypto Flow Technology Limited — Earnings Release 2003

Nov 13, 2003

GEM

WAFER SYSTEMS<08198> - Results Announcement (Q3, 2003, Summary)

WAFER SYSTEMS LIMITED announced on 13/11/2003:
(stock code: 08198 )

Year end date :31/12/2003
Currency :HKD
Auditors' report :N/A
Review of 3rd Quarterly Report by :Audit Committee

Important Note :

This result announcement form only contains extracted information from
and should be read in conjunction with the detailed results announcement
of the issuer, which can be viewed on the GEM website at
http://www.hkgem.com

                                     (\* Unaudited)     (\* Unaudited)
                                          Current Last Corresponding
                                           Period            Period
                                   from 01/01/2003   from 01/01/2002
                                     to 30/09/2003     to 30/09/2002
                                             $'000             $'000

Turnover : 127,919 113,380
Profit/(Loss) from Operations : 3,082 (4,308)
Finance cost : (2,599) (1,653)
Share of Profit/(Loss) of Associates : N/A N/A
Share of Profit/(Loss) of Jointly
Controlled Entites : N/A N/A
Profit/(Loss) after Taxation & MI : 483 (6,552)
% Change Over the Last Period : N/A
EPS / (LPS)
Basic (in dollar) : HKD 0.0017 (HKD 0.0289)
Diluted (in dollar) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : 483 (6,552)
3rd Quarterly Dividends per Share : NIL NIL
(specify if with other options) : N/A N/A
B/C Dates for 3rd Quarterly Dividends : N/A
Payable Date : N/A
B/C Dates for (-) General Meeting : N/A
Other Distribution for Current Period : NIL
B/C Dates for Other Distribution : N/A
(bdi: both days inclusive)

                                   For and on behalf of
                                   WAFER SYSTEMS LIMITED
                        Signature :
                             Name :Pang Kin Man, Edmond
                            Title :Company Secretary

Responsibility statement

The directors of the Company (the "Directors") as at the date hereof
hereby collectively and individually accept full responsibility for the
accuracy of the information contained in this results announcement form
(the "Information") and confirm, having made all reasonable inquiries,
that to the best of their knowledge and belief the Information are
accurate and complete in all material respects and not misleading and
that there are no other matters the omission of which would make the
Information herein inaccurate or misleading. The Directors acknowledge
that the Stock Exchange has no responsibility whatsoever with regard
to the Information and undertake to indemnify the Exchange against all
liability incurred and all losses suffered by the Exchange in connection
with or relating to the Information.

Remark:

1. Basis of Presentation

The unaudited consolidated results have been prepared in accordance
with accounting principles generally accepted in Hong Kong and
comply with accounting standards issued by the Hong Kong Society
of Accountants.

The principal accounting policies and basis of preparation adopted for
the preparation of the unaudited consolidated results are consistent
with those adopted by the Group in its annual financial statements for
the year ended 31 December 2002, except for the Group's adoption of
SSAP 12 (Revised) "Income taxes" issued by the Hong Kong Society
of Accountants. The adoption of this SSAP has not had any material
effect on the results for the current and prior period.

Certain comparative figures have been reclassified to conform with the
current period's presentation.

The unaudited consolidated results have been reviewed by the Audit
Committee of the Company.

1. Turnover

Turnover represents the aggregate of the net amounts received and
receivable from third parties in connection with the provision of
network infrastructure solutions, network professional services
and network software.

1. All of the Group's operations are classed as continuing.

2. Taxation

No provision for Hong Kong profits tax has been made during the
Review Period as the Group had no assessable profit arising in
or derived from Hong Kong (2002: 16% on estimated assessable
profits).

PRC income tax has not been provided during the Review Period
as the Company's PRC subsidiaries had no assessable profit
(2002: 15% on estimated assessable profits) or were within their
tax exemption period.

No deferred taxation assets were recognition as at 30 September
2003 and 2002 as their recoverability were uncertain.

1. Earnings (loss) per share

The calculation of basic earnings (loss) per share for the three months
and nine months ended 30 September 2003 is based on the unaudited
net profit (loss) attributable to shareholders of approximately
HK$(582,000) and HK$483,000 (three months and nine months ended
30 September 2002: net loss of approximately HK$1,861,000 and
approximately HK$6,552,000, respectively) and on the weighted
average number of approximately 289,945,000 shares and
approximately 286,092,000 shares, respectively (2002: approximately
282,268,000 shares and approximately 226,989,000 shares, respectively)
in issue during the period.

Diluted earnings (loss) per share has not been presented for the three
months and nine months ended 30 September 2003 and its corresponding
period in 2002 since the effect is anti-dilutive.