Crypto Flow Technology Limited — Earnings Release 2003

Aug 14, 2003

GEM

WAFER SYSTEMS<08198> - Results Announcement (Q2, 2003, Summary)

WAFER SYSTEMS LIMITED announced on 14/08/2003:
(stock code: 08198 )

Year end date :31/12/2003
Currency :HKD
Auditors' report :N/A
Review of 2nd 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 30/06/2003     to 30/06/2002
                                             $'000             $'000

Turnover : 94,198 73,376
Profit/(Loss) from Operations : 2,849 (2,436)
Finance cost : (1,784) (1,599)
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 : 1,065 (4,691)
% Change Over the Last Period : N/A
EPS / (LPS)
Basic (in dollar) : HKD 0.0037 HKD -0.023
Diluted (in dollar) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : 1,065 (4,691)
2nd Quarterly Dividends per Share : NIL NIL
(specify if with other options) : N/A N/A
B/C Dates for 2nd 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

                                   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 condensed financial statements have been prepared in accordance
   with the Statement of Standard Accounting Practice No.25 "Interim
   Financial Reporting" issued by the Hong Kong Society of Accountants
   and the disclosure requirements set out in Chapter 18 of The Rules
   Governing the Listing of Securities on the Growth Enterprise Market
   of the Stock Exchange of Hong Kong Limited.

The principal accounting policies and basis of preparation adopted for
the preparation of these condensed financial statements 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.

The condensed financial statements are unaudited but have been
reviewed by the Audit Committee.

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.

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

3. 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.

PRC income tax has not been provided during the Review Period as
the Company's PRC subsidiaries had no assessable profit or were
within their tax exemption period.

No deferred taxation assets were recognised as at 30 June 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 the six months ended 30 June 2003 is based on the unaudited net
   profit attributable to shareholders of approximately HK$50,000 and
   approximately HK$1,065,000 (three months and six months ended
   30 June 2002: net loss attributable to shareholders of approximately
   HK$1,014,000 and approximately HK$4,691,000 respectively) and on
   the weighted average number of approximately 285,980,000 shares
   and approximately 284,134,000 shares respectively (2002:
   approximately 230,603,000 shares and approximately 204,342,000
   shares respectively) in issue during the period.

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