Crypto Flow Technology Limited — Earnings Release 2004

Mar 30, 2005

GEM

WAFER SYSTEMS<08198> - Results Announcement (Final, 2004, Summary)

Wafer Systems Limited announced on 29/3/2005:
(stock code: 08198 )

Year end date :31/12/2004
Currency :HKD
Auditors' report :Unqualified

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 01/01/2004   from 01/01/2003
                                     to 31/12/2004     to 31/12/2003
                                             $'000             $'000

Turnover : 269,688 165,879
Profit/(Loss) from Operations : 6,054 4,349
Finance cost : (2,593) (3,207)
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 : 3,023 857
% Change Over the Last Period : +252.74%
EPS / (LPS)
Basic (in dollar) : HKD 0.0104 HKD 0.003
Diluted (in dollar) : HKD 0.0104 HKD 0.0029
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : 3,023 857
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
(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.

Remarks:

1. Basis of presentation
   The Company is incorporated in the Cayman Islands as an exempted
   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 31
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.

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

3. Taxation
   The charge represents PRC income tax which is calculated at rates
   applicable to respective PRC subsidiaries.

No provision for Hong Kong Profits Tax has been made in the financial
statements 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, two of the Company's PRC subsidiaries are within their 50%
tax relief period, the rest is within its tax exemption period.

1. Earnings Per Share
   The calculation of the basic and diluted earnings per share is based
   on the following data:

                       2004                    2003
   

   Earnings:
   Net profit attributable to shareholders
   for the purposes of basic
   and diluted earnings
   per share HK$3,023,000 HK$857,000

Number of shares:
Weighted average number of ordinary
shares for the purposes of basic
earnings per share 289,944,745 287,021,272
Effect of dilutive potential
ordinary shares
-warrants -- 2,705,303
-options 177,389 --
------------------------------
Weighted average number of
ordinary shares for the
purposes of diluted
earnings per share 290,122,134 289,726,575
==============================

The computation of diluted earnings per share does not assume the
conversion of the Company's outstanding convertible bonds for
both years since their exercise would result in an increase in
earnings per share from continuing ordinary operations for both
years. The effect of share options of 2003 was excluded from the
calculation of diluted earnings per share because certain
exercise price of the Company's share options was higher than
the average market price of ordinary shares.