President: Mr. Zheng Hui

In the year of 2009, Agricultural Development Bank of China ( ADBC ), though faced with the aftermath of theglobal financial crisis and complicated economic/financial situation both domestically and internationally, hasachieved remarkable progress in positively facilitating lending to the agriculture sector of China in line with thestate strategy of “expanding domestic demand, ensuring growth, people’s well-being, and stable situation”,and the supportive policies for the agriculture sector and farmers. At the end of 2009, the loan balance totaledRMB1,451.26 billion, increasing by RMB231.98 billion from the beginning of the year, representing the largestmargin ADBC has ever materialized. In 2009, ADBC arranged loans totaling RMB419.36 billion, increased 6.2%from the previous year, in financing the procurement of 353 billion jin ( or 176.5 billion kg) of grain, 97.33million dan of cotton and 12.84 billion jin ( or 6.42 billion kg ) of edible oil. A total of RMB30.7 billion of loanswere issued for national reserve of chemical fertilizer, sugar and pork. As for agricultural infrastructure lendingscheme, the balance reached RMB236.13 billion, increasing by RMB98.74 billion or 71.9% from the beginningof 2009, which funded 1,471 projects. RMB15.23 billion of loans for county-level development programs wereissued. A total of RMB115.79 billion of loans were issued to support the leading agribusiness and processingfirms, grew 16.79 billion from that of the beginning of 2009. In terms of loans for facilitating the applicationof agricultural technologies, RMB65.57 billion for 138 projects was provided; and RMB10.14 billion of loanswere made available for 4,646 small-sized agri-firms. In 2009, ADBC made great efforts in non-cash settlementof agricultural products procurement, and established 8,648 online accounts with total settlement amountup to RMB128.52 billion, representing tremendous increase from one year ago. ADBC in the year issued23,000 new Peony Golden Hill Cards, making the total to 110,000. It has successfully initiated foreign currencyloan service and made the international services more diversified. Measures have been taken to speed updeveloping the intermediary services such as international settlement and insurance agent business, with thetotal income of RMB360 million, an increase of 16%. As of December 31, 2009, deposit balance of ADBC stoodat RMB441.99 billion, grew RMB139.09 billion from the beginning of 2009. RMB301.38 billion was raised by theBank by issuing bonds, up 7% in amount but down 2.04 percentage points in issuing cost. The transactionsin treasury market realized by ADBC totaled RMB8481 billion. RMB11.22 billion of bad debt was written off bythe Bank, bringing the NPL ratio down to 3.61%, down 0.19 percentage point from the previous year. With thesubstantial narrowing of the interest spread last year, ADBC managed to collect 90.89% of interest due, up 4.03percentage points from 2008, marking the highest level the Bank has ever reached. In 2009, ADBC’s operatingprofit amounted to RMB14.37 billion and book profit was RMB3.15 billion, increased 20.5% from the previousyear. The accomplishment would not be possible without the invaluable assistance and support from allstakeholders, for which I would like to express my gratitude on behalf of ADBC.

The year of 2010 will be the last year of the state “11th Five-Year Plan” , and it is the significant year fordealing with the aftermath of global financial crisis. ADBC will, following the guidance of the state scientificdevelopment approach, strengthen our support to key areas and vulnerable links in China’s rural reformand development based on the state macro-regulation and the state policies to support agriculture, farmersand rural areas, while playing the role of the pillar in China’s rural financial system. ADBC will make necessaryadjustments in its loan portfolio in order to ensure such loans available to the key areas, and the needsfor loans to procure grain, cotton and edible oil be satisfied while managing the loans in a safe way. ADBCwill prioritize its support for rural infrastructure construction, and offer selective support to agriculturalindustrialization projects. With the improvement of customer services, ADBC will drive in depth reforminitiatives, and strengthen management at operational units. With more efforts made in team building, ADBCis committed to the improvement of its management and will take all the means to make ADBC a bank for newrural development and a modern policy bank, hence to further devote its share to economic development of the rural areas of our country!