Crypto Flow Technology Limited — Earnings Release 2003

May 13, 2003

GEM

WAFER SYSTEMS<08198> - Results Announcement (Q1, 2003, Summary)

WAFER SYSTEMS LIMITED announced on 13/05/2003:
(stock code: 08198)

Year end date :31/12/2003
Currency :HKD
Auditors' report :N/A
Review of 1st 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 31/03/2003    to 31/03/2002
                                            $'000            $'000

Turnover : 58,113 23,660
Profit/(Loss) from Operations : 1,843 (2,719)
Finance cost : (828) (874)
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 : 1,015 (3,677)
% Change Over the Last Period : N/A
EPS / (LPS)
Basic (in dollar) : HKD 0.0036 (HKD 0.0207)
Diluted (in dollar) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : 1,015 (3,677)
1st Quarterly Dividends per Share : NIL NIL
(specify if with other options) : N/A N/A
B/C Dates for 1st 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.

Remarks:

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 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.

The unaudited consolidated results 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.

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.

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.

There was no significant unprovided deferred taxation for the three
months ended 31 March 2003.

1. Earnings (loss) per share

The calculation of basic earnings (loss) per share for the three months
ended 31 March 2003 is based on the unaudited net profit
attributable to shareholders of approximately HK$1,015,000 (2002 :
net loss of approximately HK$3,677,000) and on the weighted
average number of approximately 282,268,000 shares (2002 :
approximately 177,778,000 shares) in issue during the period.

Diluted earnings (loss) per share has not been presented for the
three months ended 31 March 2003 and its corresponding period
in 2002 since there was no dilutive potential ordinary share in
existence during the periods.