Crypto Flow Technology Limited — Earnings Release 2006

Nov 14, 2006

GEM

WAFER SYSTEMS<08198> - Results Announcement (Q3, 2006, Summary)

Wafer Systems Limited announced on 14/11/2006:
(stock code: 08198 )

Year end date :31/12/2006
Currency :HKD
Auditors' report :N/A
3rd Quarterly Report Reviewed 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 01/01/2006   from 01/01/2005
                                     to 30/09/2006     to 30/09/2005
                                             $'000             $'000

Turnover : 219,498 292,615
Profit/(Loss) from Operations : 4,186 3,168
Finance cost : (2,609) (1,995)
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 : 1,327 1,179
% Change Over the Last Period : +12.55%
EPS / (LPS)
Basic (in dollar) : HKD 0.0046 HKD 0.0041
Diluted (in dollar) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : 1,327 1,179
3rd Quarter Dividends per Share : NIL NIL
(specify if with other options) : N/A N/A
B/C Dates for 3rd Quarter 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 unaudited consolidated financial results have been prepared in
accordance with Hong Kong Financial Reporting Standards issued
by the Hong Kong Institute of Certified Public Accountants ("HKICPA")
and the applicable disclosure requirements of the Rules Governing
the Listing of Securities on the Growth Enterprise Market of the Stock
Exchange of Hong Kong Limited.

The accounting polices adopted in preparing the unaudited
consolidated financial report were in consistent with those applied
for the annual financial report for the year ended 31 December 2005.

The unaudited consolidated results have been reviewed by the audit
committee of the Company.

(2) 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.

(3) All of the Group's operations are classed as continuing.

(4) Taxation

The charges represented PRC income tax that were calculated at
rates applicable to the respective PRC subsidiaries.

No provision for Hong Kong profits tax has been made for the
Company and other Hong Kong subsidiaries either because the
accumulated tax losses brought forward exceed the estimated
assessable profits for the nine months ended 30 September 2006 and
its corresponding period in 2005 or the entities sustained losses for
taxation purposes.

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 Review Period, the Company has one PRC subsidiary within its
50% tax relief period.

A deferred tax asset has not been recognized in the financial statement
in respect of tax losses available to offset future profits as it is not
certain that the tax losses will be utilized in the foreseeable future.

(5) Earnings per share

The calculation of basic earnings per share for the three months and
the nine months ended 30 September 2006 is based on the unaudited
profit attributable to equity holders of the parent of approximately
HK$315,000 (2005: HK$317,000) and approximately HK$1,327,000
(2005: HK$1,179,000) respectively and on the weighted average
number of approximately 289,945,000 (2005: 289,945,000) shares in
issue during the period.

Diluted earnings per share has not been presented for the three
months and nine months ended 30 September 2006 and for the three
months ended 30 September 2005 since the effect is anti-dilutive.