Crypto Flow Technology Limited — Earnings Release 2002

Mar 26, 2003

GEM

WAFER SYSTEMS<08198> - Results Announcement (Final, 2002, Summary)

WAFER SYSTEMS LIMITED announced on 26/03/2003:
(stock code :08198)

Year end date :31/12/2002
Currency :HKD
Auditors' report :Unqualified
Review of Quarterly Report by :N/A

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

                                         (Audited)         (Audited)
                                           Current              Last 
                                                       Corresponding
                                            Period            Period
                                   from 01/01/2002   from 01/01/2001
                                     to 31/12/2002     to 31/12/2001
                                             $'000             $'000

Turnover : 180,333 149,579
Profit/(Loss) from Operations : (4,214) 11,540
Finance cost : (2,186) (3,342)
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 : (5,849) 8,007
% Change Over the Last Period : N/A
EPS / (LPS)
Basic (in dollar) : (HKD 0.024) HKD 0.0485
Diluted (in dollar) : N/A HKD 0.0385
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : (5,849) 8,007
Final Dividends per Share : NIL NIL
(specify if with other options) : N/A N/A
B/C Dates for Final 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 Company is incorporated in the Cayman Islands as an exempt
company with limited liability. The shares of the Company were
listed on the Growth Enterprise Market of The Stock Exchange
of Hong Kong Limited (the "Stock Exchange") on 17th May, 2002.

The financial statements have been prepared under the historical
cost convention and in accordance with accounting principles
generally accepted in Hong Kong. The principal accounting policies
adopted are as follows:

The consolidated financial statements incorporate the financial
statements of the Company and its subsidiaries made up to 31st
December each year. All significant inter-company transactions
and balances within the Group are eliminated on consolidation.

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 in the
financial statements in 2002 as the Group had no assessable profit
for the year. Pursuant to the relevant laws and regulations in the
PRC, the Company's PRC subsidiaries are entitled to exemption
from PRC income tax for two or three years commencing from
their first profit-making year of operation and thereafter, these
PRC subsidiaries will be entitled to a 50% relief from PRC income
tax for the following three years. During the year, only one of
the Company's subsidiaries is within its 50% tax relief period,
the rest are within their tax exemption period. The
Company had no significant unprovided deferred taxation
for the year or at the balance sheet date.

1. (LOSS) EARNINGS PER SHARE

The calculation of the basic (loss) earnings per share is based on the
net loss attributable to shareholders of HK$5,849,000 (2001: net
profit of HK$8,007,000) and the weighted average number of
243,625,000 shares in issue during the year (2001: 165,221,000
shares after adjusting for the effect of the redenomination,
subdivision and consolidation of shares as well as bonus issue
made by the Company).

No diluted loss per share has been presented in 2002 as the effect
of the potential shares outstanding during the year was anti-dilutive.