!"#$%&'() 2006 China Association of Microfinance Annual Report 2006
!
!!"#$%&'()*+,-./01!"#$%!!"#$!"#$%&'()*+!"#$%&'(!"#$%&'()*+,-.!"#$%&'()*+,-./0!!!"#$% &'()*+,-.(/012345 The Mission of CAM The mission of CAM is to promote the government to support microfinance and inclusive financial sectors, to strengthen international cooperation in microfinance, to enhance self-discipline of the guild, to upgrade the management of MFIs, to provide fundraising services for MFIs, to provide needed financial services for the poor and low-income population, and to make a contribution to achieve the objective of allround construction of a harmonious society. The Objective of CAM The objective of CAM is to make the CAM become one cooperative network organization for domestic MFIs with the goal of poverty alleviation.
CONTENTS 01! ^ÇÇêÉëë 02 OMMS!"# tçêâ=pìãã~êó=çñ=vé~ê=omms 12 OMMT!"# tçêâ=mä~å=çñ=vé~ê=ommt 14!"#$%&'( déåéê~ä= fåñçêã~íáçå= çñ= `^jdë jéãäéê= fåëíáíìíáçåë 18!" _~ä~ååé= püééí 19 fååçãé= pí~íéãéåí 20! ^ìçáíáåö= oééçêí 22!"#$%&'()*+ fåíêççìåíáçå=çñ=`^j!
!!"#$%&'()* 2005!"#$%&' ()!"#$%&!"#$!"##$%&'(!"#$!!"#$%&'"()*+,-./!"#$%&'()!"#$%&'!"#$%&'!"#$%&'()*+,-./0")123!"#$%!"#$%&'(!"#$%!"#$%&'!"#$%!"!"#$%&'(%)*+,-.!"#$%&'()*!"!!"#$!"!"#$%!"#$!"#$%&'()*+,!"#$%&'()*+!"#$%!"#$%!"#$!%&'()*+!"!"#$%&!"#$%&!"#$%&'()*+,-./012!"#!"!"#$%&'()*+,-./!"#$!"#$%&'()*+,-./0 Du Xiaoshan Director of Administrative Committee of CAM!"#$%&'()*+",-. Address China Association of Microfinance (hereinafter referred to as CAM) has gone through the development of two years since its establishment in 2005. While reviewing the past work, on the one hand, we feel consolable because our staff have subjectively made efforts to carry out the mission of the CAM, which is to serve our member institutions and facilitate the healthy development of microcredit as well as the establishment of inclusive financial sectors in China; we have indeed conducted some activities and obtained certain achievement, which is depicted in this annual report; but on the other hand, what we still need to urge ourselves time after time for further improvement is that our capability and efficiency are not at a favorable level to match the needs of our members. Therefore, we have to keep alert, undertake introspection, work hard and enhance our quality so as to better serve our member institutions. As for the microcredit in China today, accomplishments and problems coexist, and opportunities and challenges are combined. Thus our task and responsibility are to catch the opportunities while confronting the challenges. We will constantly exploit and improve ourselves so that we can make a contribution to the healthy development of the microcredit in China, especially for NGO type of MFIs. Hereon, we would like to present our gratitude to Citi for its great support and assistance, as well as all the individuals and organizations that have ever supported and helped the CAM. China Association of Microfinance Annual Report 2006 01
OMMS!"#!!"#$% 2006 3 21 24!"#$%&'!"#$%&'()!"#$%&!!!"#$%&'()*!"#$%&'()*+!,-./0123456789:!"#$%& '()*!!"#!"#$%&'()*+!"#$%&'!"#$%!"#$%&!"#$ %&'()*!"#$%&'()!"!"#$%&'()*!"#$%&'()*+,!"#$%&!"!"#$!"#$%&!"#$%&!GB GT ASA BRAC!"#$%&'()!"!"#$%&'()*+,-./012!"!!!"#$% &'()!"#$%&'()*+,-./01234567!" CAM C!"!"#$!"#$%&'()*+,-./!"#$%&'()*!"#$%&!"#$!"#$%&'()!"#$%&'()*+,!"#$%&'()*!"#$%&'()*+,-+./01234!"#$%&'()!" BWTP 02 China Association of Microfinance Annual Report 2006
Work Summary of Year 2006 fãéçêí~åí= ^ÅíáîáíáÉë Asia Microfinance Forum The Asia Microfinance Forum was held at Tianlun Dynasty Hotel in Beijing from March 21 to 24, 2006, which was co-organized by The Foundation for Development Cooperation (hereinafter referred to as FDC) and The Banking with the Poor Network (hereinafter referred to as BWTP) in collaboration with Finance Research Institute of PBOC and CAM, and CICETE was the implementing agency of the forum. This forum was jointly sponsored by Citi, UNDP, GTZ, and IFAD etc., the theme of which was "Partnerships and Innovations: Increasing the Impact of Microfinance in Asia". The organizers expected to actively promote the development of microfinance in Asia through the programs of research, advocacy, policy dialogue, information sharing and capacity building. There were over 300 participants who attended this forum, including the representatives from Citi, UNDP, WB, IFC, KFW, GTZ, GB, GT, ASA, BRAC, CDF, the delegates of microfinance institutions from twenty countries as USA, Australia, Holland, Philippines etc. as well as domestic officials from PBOC, CBRC, CASS and MOFCOM and domestic experts in the field of finance. Meanwhile, all experts and participants exchanged their views and engaged in interactive discussions regarding four main topics of "New Business Partnership Models for Microfinance Outreach", "Partnerships for Access to Capital and Products", "Creating an Enabling Environment for Microfinance", and "The Future of Microfinance in Asia". This forum achieved a good effect, which not only promoted information exchange and cooperation regarding microcredit in Asia, but also entirely facilitated the development of microcredit over the world. BWTP China Association of Microfinance Annual Report 2006 03
!"#$%&'()*+,-./ 2006 10 22 23!!"#$%&'()*+,-.!"#$%&'()*+ -!"#$%&'()*+,!"#"$%&'()*!"!"#$%&'!"#$%&'() 2006!"#$%&'()*+!!"#$%&'()*!"#$%&!"#$%!!"#$%&!"!"#$%& CAM!"#$%&'()*+ 230!"#$!"#$%&'!"#$%&'()!"#$% &'()*+!"#$%&'()*!"#$%&'( 100!"#$%&'()*+,-./01234!"#$%&%'()*+!"!"#$%&'()*+,-./+01!"#$%&'()*%&+,-!"!"#!"# $%&' ()*+ $,-. /01234!"#$!"#$%&'!"#$%&'()*+,-./01 234!"#$%&!"#$%&'()*+,-./!"#$%!"#$%&'()*+!"#$%&'()*+,'-./01#23456!"#$%&'( )!"#$!"#$%!"#$%!"#$%&'()*+,!"# $%&'() *+,!"#$%&'()*+,-./0123456 7-89)*:!"#$%&'()!!"#$%&'()*+,-./0123456()*+78.9:;<= 04 China Association of Microfinance Annual Report 2006
Grameen International Conference on Microcredit in China The Grameen International Conference on Microcredit in China was successfully held at the Diaoyutai State Guesthouse in Beijing from October 22 to 23, 2006, which was co-organized by Grameen Bank (hereinafter referred to as GB) and CAM. The aim of this conference was to promote the development of microcredit for poverty alleviation in China by the way of experience exchanges, policy research and international cooperation. The founder of Grameen Bank and leader of international microcredit movement, Professor Yunus addressed the conference himself right after he got 2006 Nobel Peace Prize. The domestic government officials from PBOC, CBRC, MOF etc. as well as the delegates from international organizations such as Citi, UNDP and WB etc. were also invited to deliver their speeches. There were totally over 230 participants, including representatives from Bangladesh, USA and Australia etc. and international organizations, and domestic MFI delegates from twelve provinces, cities, and autonomous regions. After the thorough communication and discussion at the conference, the prospect of over 100 NGO-type of MFIs was paid more and more attention from central government and international organizations. During the conference period, Professor Yunus visited senior officials such as Madame Wu Xiaoling, Vice Governor of PBOC, Mr. Cai Esheng, Vice Chairman of CBRC, Mr. Wang Zhaoxing, Associate Chairman of CBRC, Mr. Liu Jian, Director of Poverty Alleviation Office of State Council, Mr. Li Zhaoxing, Minister of Foreign Affairs, and Mr. Yi Xiaozhun, Vice Minister of Commerce, respectively. Professor Yunus did communicate very well and reach certain common understanding with those senior officials in terms of the present situation and prospect of microcredit in China, which played an active role in facilitating the growth of microcredit in China. Moreover, with the glory of Nobel Peace Prize, all domestic media raised a contest of reporting the visit of Professor Yunus in China. "Microcredit Fad" or "Yunus Effect" suddenly surged on the earth of China so that the general public upgraded their cognition regarding the development of microcredit in China and its effectiveness in poverty alleviation. With the issue of new country development strategy by central government and the growth of microcredit in China, all microcredit practitioners, advocates, and researchers are on the tiptoe of expectation for the rapid growth of MFIs and the bright future of microcredit in China. 1 2 NK!!"##$%&'!"#!"!#$%&'!"#!!"#$%&'! From Right to Left: Mr. Huang Yi, Director of Research Bureau of CBRC, Prof. Du Xiaoshan, Madame Wu Xiaoling, Vice Governor of PBOC, Prof. Yunus, Mr. Yi Gang, Assistant Governor of PBOC, Bai Chengyu, Wang Dan CAM OK!"#$%&'&()*+ Prof. Yunus & Mr. Yi Xiaozhun, Vice Minister of MOFCOM China Association of Microfinance Annual Report 2006 05
2006!"#$!!" 2005!"#$%&'()*+,!!"#$%&'()*+,-./2006!!!"#$%&'(!")! 2006 10 26!"#$%&'(!"# 75!"#38!"#$% 11!"#$%&'()*+,-./01 2005!"#$%&'(!"#$%!"!"#$%&'%(!"#$!"#$%&'"()*+,-!"#$!2005!"#$%&'()*+!!"#!"#$%&'!"#$%!"#$%&!"!"#$%&'!"#$%&'()*!"#$%&!"#$%&'()*"+,-!"#!"#$%&'!"#$%&'()*+!"#$%&#'!"!"!#!"#!"#$%&'()! "!"#!"#$"#%&'()!!"#$%!"#$%&'()*+()!"#!"#$%&'$()*+,-. CAM 06 China Association of Microfinance Annual Report 2006
2006 Citi/CBA Microentrepreneurship Award CAM After the successful organization of 2005 Global Microentrepreneurship Award, CAM organized the second round of appraisal activities for 2006 Citi/CBA Microentrepreneurship Award again, and the award ceremony was held at the Media Center Hotel in Beijing on October 26, 2006. The microentrepreneurship awards of this year were issued to 75 outstanding clients, 38 outstanding credit officers as well as 11 outstanding MFIs. As compared to 2005 Global Microentrepreneurship Award, the current award got improved in terms of the scale, coverage and representation. During the process of preparation and planning of the appraisal activities, the award committee learned the experiences of the previous award as well as other countries in combination with the actual situation in China so as to further consummate the management system, operation mechanism, relevant dissemination and other procedures of this award. In order to magnify the influence of the microentrepreneurship award and obtain professional guidance and suggestion in terms of the design and execution of this activity, the award committee invited famous scholars and government officials to be members of advisory committee of Global Microentrepreneurship Award of China, including Madame Wu Xiaoling, Vice Governor of PBOC, Mr. Tang Shuangning, Vice Chairman of CBRC, Mr. Yi Xiaozhun, Vice Minister of MOFCOM, Madame Zhen Yan, Secretary General of the Secretariat of ACWF, Mr. Mao Yushi, renowned economist, Mr. Renaud Meyer, Deputy Representative of UNDP, and Mr. Liu Zhangjun, Vice Chairman of CBA. China Association of Microfinance Annual Report 2006 07
!"# 2006 2!"#$%&'()*+,-./-01 9!"#$%!"#$%&'( 2006 7 7!"#$%&'()*+,-+./!"#$%!"#$%&' 2006 10 26!"#$%&'()*+,-+./!"#$%&'!"#$%&'()*+!"#$%&'()*+,-./!"#$%&'() *+,-./012345678!"#$%&'()*+,-.!/!"#$%&'()*+, 2006 10 24 10 25!"#$%&'!"#$%GB!"#$%&'()*+,-./012&34567!"#$%!"#$%&'()*+,-./0!"#$%&'() *+,-'% 2006 11!"#$%&'()*+,-./!"#$%&'()*+,-.!"#$%&'!"#$%&'()*+!!"#$%!"#$%& 6 24!"#$%!!"!!"!"#$%&'()*+,-./012!"#$%!"#$%&'()*+,!"#$%!"#$%&!"#$%!"#$!"#$%&'()*+,-./01!"#$%&'()*+,!"#!"#$%&'()*!"#$%&'! 2006!" 30!"#$%&'()*+ 2006 5!" 10!"#$%&'()*+,-./0 2006!"!"#$%&'()*+,-./012 20! 2006 11!"# FPC!"#$%&'()*+,-./012!3!"#$ FPC!"#$%&'()*+,-./01234%&5678 10 08 China Association of Microfinance Annual Report 2006
oçìíáåé= tçêâ The first work meeting was held in middle February, 2006 and nine standing committee institutions attended it in order to study, design and carry out the work plan for the next year. The second work meeting was held on July 7th, 2006 for the purpose of summarizing the work of first half year and planning for the remaining half year. The third work meeting was held on October 26th, 2006 aiming at summarizing the past work and making suggestions on the future work. The CAM assisted Beijing Office of WB in organizing microfinance distance learning courses in Beijing, Lanzhou, Chengdu and Guiyang etc. and provided the opportunities for members to participate in the training and workshops. From October 24 to 25, 2006 the CAM held a training workshop in collaboration with GB/GT, which focused on popularizing GB. This workshop was lectured by the experts from GB/GT, meanwhile, domestic experiences were also introduced. The CAM continued to absorb new members and provided consultancy and other required services for some members. For instance, the CAM recommended and helped CBA and Harbin Commercial Bank to attend Global Microcredit Summit held in Canada in November of 2006. The CAM undertook ten case studies regarding microcredit methodologies and wrote a summary report after analyzing and evaluating them. The CAM compiled "Microcredit to the Poor" for six issues with about 240,000 words. The electronic versions were sent to the website for the reference. The work of collecting basic information of member institutions was accomplished in the first half year. The information was consolidated into tables. The CAM continued to consummate appraisal manuals of MFIs and carry out the evaluation work. The CAM continued to improve website construction, open up on-line library and strengthen forum communication. The CAM continued to accomplish the basic information report about NGO-type of MFIs in China. The CAM continued to collect and translate domestic and international information and document about microcredit. The CAM continued to reinforce capacity building of the secretariat and enhance business skill of the staff. líüéê=^åíáîáíáéë The Asia Microfinance Forum Literature Collection with 300,000 words was compiled in 2006. The CAM Literature Collection with 100,000 words was finished in May, 2006. The Brief Introduction of CAM Member Institutions with over 200,000 words was accomplished in 2006. The Organization Culture of FPC with 100,000 words was edited in middle November of 2006, which introduced the process and tendency how FPC gradually formed its unique organization culture during the microcredit operation.! China Association of Microfinance Annual Report 2006 09
!"#$%&'(!"#$% iáëí=çñ=^çãáåáëíê~íáîé `çããáííéé=çñ=`^j!"#$%&'()*+!""#$%&'()!*! "#$%!"#$%&'()*+!"#$%&'()*!"#$%&'()!"#$!%&'()*+!"#$%&'()*+,!"#$%&'()*+,-.!"#$%&'()* SPPA!"#$%&'()*!"#$%&!"#$%&'()*+!"#$%&'() RDI, CASS CICETE Development Department of ACWF Shanxi Jinzhong Rural Poverty Alleviation Association Longshutou Poverty Alleviation Foundation, Lin County, Shanxi Gansu Tongwei Rural Development Association Gansu Dingxi Urban & Rural Development Association Guangxi Du'an Rural Development Association Yunnan Jinping Rural Cooperative Development Association SPPA Project Office, Yunnan Baoshan Longling County Government Yunnan Kunming Reemployment Service Center Association for Rural Development of Poor Areas in Sichuan Yilong Association of Rural Development, Sichuan!"#$ %&'( China Office of Plan International, Shaanxi! "#$%&'()*!"#!"!"#$%&'()!"#$%&'()*+,!"#$%&'()*+,)!"#$%#!"#$%&!"#$%&'(!"#$%&!"#$%&'()!"#$%&'()*+,()-./01!"#$%&'()*+,-.!"#$%&'()*+,-./0123!"#$%&'(!"#$%&'( Jiangxi Shanjianghu Sustainable Development Association Trade Union, Henan Nanzhao Funding the Poor Cooperative, Henan Yi County Funding the Poor Cooperative, Baoding City, Hebei Lida Branch of Harbin Commercial Bank, Heilongjiang Microcredit Office of Haidong Branch, Agricultural Bank of Qinghai Qinghai Tongren Rural Development Association Guizhou Rural Development Association Guizhou Xingren Rural Development Association Pishan Women Income Generation Program, XinJiang Chifeng Zhaowuda Women's Sustainable Development Association Wushen Poor Area Social Development Microcredit Management Center Ningxia Yanchi Women's Development Association Hunan Xiangxi Region Rural Development Association 10 China Association of Microfinance Annual Report 2006
!"#$%&'()*+,!"#$%&'()*!"#$%&'() Hubei Xingshan Women Participatory Development Project Office Liaoning Xinbin Poverty Alleviation Office Tianjin Women's Promotion Association for Venture Creation Development!"#$ iáëí=çñ=pí~åçáåö `çããáííéé=çñ=`^j!"#$%&'()*+!""#$%&'()!*! "#$%!"#$%&'()*!"#$%&'()!"#$%&'()*+,)!"#$%#(!"#$)!"#$%&'()*+,-.!"#$%&'( RDI, CASS CICETE Development Department of ACWF Longshutou Poverty Alleviation Foundation, Lin County, Shanxi Nanzhao Funding the Poor Cooperative, Henan Lida Branch of Harbin Commercial Bank, Heilongjiang Microcredit Office of Haidong Branch, Agricultural Bank of Qinghai Chifeng Zhaowuda Women's Sustainable Development Association Ningxia Yanchi Women's Development Association!"#$ iáëí=çñ=^çîáëçêó `çããáííéé=çñ=`^j!"#!"#$%&!"#$%&'(!"#!"#$%&'!"#$%! ADB Citi GF-USA GT Planet Finance PMC UNDP WB China Association of Microfinance Annual Report 2006 11
OMMT!"#!"#$%&'()*+,-./!"2006!"#$%&'()*+,!"#$%&'()*+,-./01234!"#$%&'(! 2007!"#$%&'()*+! "#$%&'()*+,!"#$%& '()*+!"#$%&'()*+!"#$%&'()*+!"#!"#$%& '(!"#$%&'()*+,-./0123'40*+,-5!"#$%&'()*+!"#$%&!"#$%&'()*+!"#$%&2007!"#$%&'()*+,-./!"!"#$%!"#$%&'$(!"#$%&'()*+$,-./!"!"#$%& 2007!"#$%&"'()*+,-./012345!"#$%&'()*+,-!"#$%!"#$%&'!"#$!"#$%&'(")*+!"#$%&'!"#$!"#$%&'()*+,-./!"#$!"#$!"#$%&!"#$%&'()*+,-./01!"#$%&'()*!"#$% 2007!"#$%!!"# 2007 10!"#$%&! 12 China Association of Microfinance Annual Report 2006
Work Plan of Year 2007 Through the efforts of CAM, and especially with the impact of the visit of 2006 Nobel Peace Prize Laureate Prof. Yunus, the policy environment in which Chinese MFIs operate has been improved and become conducive to the future development of microcredit. The CAM will conduct the following work in 2007 in order to promote the growth of microcredit in China. To further strengthen propaganda and promote policy improvement, and particularly disseminate the concept of inclusive financial sectors in combination with state policy orientation, and to emphasize two indispensable objectives of microcredit, which are social development objective of targeting the poor and low-end clients and industrial development objective of commercial sustainability. To undertake theoretical and experimental research of microcredit and complete all study reports. To further reinforce the guidance for member institutions and conduct self-discipline work. The emphasis of Year 2007 is to regulate financial management of member institutions, enhance management level, increase financial transparency, and guarantee the authenticity and reliability of financial reports. Therefore, the CAM will cooperate with Citi Training Center to hold a workshop and training class of financial management. To provide technical assistance and training for pertinent member institutions in 2007 and continue to hold all kinds of training classes in collaboration with Citi Training Center. To continue to manage website and publication and enrich the content of website, by which communication can be strengthened. To reinforce the cooperation and communication with outside parties and develop some projects. The CAM will cooperate with GB/GT and help it to set up its branches in Sichuan and Inner Mongolia etc. The CAM will also take use of all kinds of channels to raise fund for member institutions. To continue to organize relevant workshops, including 2007 CBA/Citi Microentrepreneurship Award. The annual meeting of CAM will be held in October, 2007.! China Association of Microfinance Annual Report 2006 13
!"#$%&'( déåéê~ä=fåñçêã~íáçå=çñ=`^jdë=jéãäéê=fåëíáíìíáçåë!"!!! Institutinon Active Clients Loan Outstanding Loan Officer Repayment Rate Total Assets Net Profit 2006/12/31 2006/12/31 2006/12/31 2006 2006 2006!"#$%&'()*+ 1517 3034000.00 4 100.00% 3359907.04 (35711.99) Shanxi Jinzhong Rural Poverty Alleviation Association!"#$%&'()* 1278 886900.00 3 98.00% 161401.23 39407.00 Longshutou Poverty Alleviation Foundation, Lin County, Shanxi!"#$%&'()*+,- NGO for International Economic & Technical Cooperation, Gansu!"#$%&'( Gansu Gaolan Urban & Rural Development Association!"#$%&'()*+,-./01 375 562400.00 12 100.00% 1530782.25 22060.16 Project Office for Children Programming and Development in Poor Area of Weiyuan County, Gansu!"#$%&'() 640 1148460.00 10 96.40% 2562246.74 242.52 Gansu Tongwei Rural Development Association!"##$%&'( 1495 1759835.56 4 97.15% 2262072.57 41648.73 Gansu Wushan Urban & Rural Development Association!"#$%&'()*+, 845 810464.94 4 90.90% 3354579.54 (444968.64) Urban & Rural Development Association, Jinyuan County, Baiyin City, Gansu!"#$%&'() 601 1626500.00 6 98.70% 2352381.52 78243.56 Gansu Hezheng County Rural Development Association!"#$!%&'()*+ 1499 3600362.00 5 100.00% 3975419.49 (75540.49) Gansu Dingxi Urban & Rural Development Association!"#$%&'()* 865 1713060.19 5 76.00% 2071141.15 (27112.53) Gansu Jishishan Rural Development Association!"#$%&'()*+, 1309 1589219.00 10 98.03% 1628578.14 185338.91 Guangxi Du'an Rural Development Association!"#$%&'()* 5138 1892.77 24 90.90% Guangxi Pingguo Microcredit Association!" UNDP!" Guangxi Dahua UNDP Project Office!"#$%&'()*+ 10 25000.00 4 100.00% 101350.00 1350.00 Rural Women Microcredit Association, Xincheng County, Guangxi!" UNDP!" 1877 1703642.00 5 94.00% 1813328.56 143058.51 Guangxi Longlin UNDP Project Office!"#!"#$%&#'()* 3018 281000.00 88 1 100.00% 104033.10 36431.15! YUEP YUEP of Social Science Academy,Yunnan!"#$%&'()* SPPA 5672 2882575.00 12 96.00% 3068292.91 (4056.65) SPPA Project Office,Yunnan Baoshan Longling County Government!"#$%&'()*+,-. 2004 1991382.00 5 85.00% 2015950.12 47151.04 Yunnan Jinping Rural Cooperative Development Association 1 88!"#$%&!' Note 1: These 88 credit officers are part-time workers. 14 China Association of Microfinance Annual Report 2006
!"!!! Institutinon Active Clients Loan Outstanding Loan Officer Repayment Rate Total Assets Net Profit 2006/12/31 2006/12/31 2006/12/31 2006 2006 2006!"#$%&'()*!"#$%& 211 5 98% Yunnan Kunming Reemployment Service Center!"#$%&'()*+, 936 1631360.80 7 93.00% 2123267.96 21430.55 Yunnan Malipo County Rural Economic Development Association!"#$%&'()*+, Xieshou Microenterprise Development Centre, Yunnan!"#$%&'()*+, Yulong County Microcredit Office for Poverty Alleviation, Yunnan!"#$%& Employment Bureau of Deyang City, Sichuan!"#$%&'()*+,-./0 5211 9540382.49 16 98.00% 10059794.11 124817.41 Tongjiang Support Service Cooperative of the Poor, Sichuan!"#$%&'()*+, The Dabashan Research Academy for Ecology and Poverty Problem!"#$%&'()*+ Sichuan Heishui Rural Economic Development Association!"#$%&'( Sichuan Mao County Rural Development Association!"#$%&'() Yilong Association of Rural Development, Sichuan!"#$%&'()*+ 2898000.00 7701942.00 84466.00 Association for Rural Development of Poor Areas in Sichuan! "#$%&'()*+, Microcredit Program Office of Kai County Poverty Alleviation Office, Chongqing!"#$ %&'( China Office of Plan International, Shaanxi!"#$%&'()*+,-./01 200 1618800.00 8 96% 6244274.57 Baoji City Microcredit Guarantee Center for Laid-off & Unemployed People, Shaanxi!"#$%& LPAC!" LPAC Project Office of Hanbin District, Ankang City, Shaanxi!" UNDP Ansai UNDP Project Office, Shaanxi!"#$%&'()*+ 732 1241690.00 4 100.00% 1665359.25 7584.20 Jiaxian Women's Sustainable Development Association, Shaanxi!"#$%&'()*+, 720 817600.00 4 100.00% 845725.43 11498.04 Pucheng Women's Sustainable Development Association, Shaanxi!"#$%& 336 354300.00 2 100.00% 399447.09 1857.09 Xixiang Women's Development Association, Shaanxi!"#!$%&'( 736 776400.00 3 100.00% 988453.74 180488.58 Yuyang District Women's Federation, Yulin City, Shaanxi! "#$%&'()* 818 518333.00 3 100.00% 766502.79 11106.00 Jiangxi Shanjianghu Sustainable Development Association /UNDP!"#$%&'( 101 994420.00 1 100.00% Henan Office of Microcredit Project of All-China Trade Union/UNDP!"#$%&'() 6153 6823852.00 26 99.00% 10238712.98 60378.80 Nanzhao Funding the Poor Cooperative, Henan!"#$%&'()* 1672 1701293.20 4 98.49% 1752095.02 (92528.64) Yucheng Funding the Poor Cooperative, Henan China Association of Microfinance Annual Report 2006 15
!"!!! Institutinon Active Clients Loan Outstanding Loan Officer Repayment Rate Total Assets Net Profit 2006/12/31 2006/12/31 2006/12/31 2006 2006 2006!"#$%!"#$ 17 9200000.00 1 100.00% 994420.00 Social Security Department of Trade Union of Nanyang City, Henan!"#$%&'() 585257.00 (82195.00) Puyang Rural Credit Cooperative, Henan!"#$%&'()*+ /LPAC Foreign Investment Project Office/LPAC Project Office of Xinyang County, Henan!"#$%&'()*+, Mutual Fund Coopereative of He Village, Lankao County, Henan!"#$%&'()*+, 5635 8433886.03 25 98.00% 8951310.00 126977.06 Yi County Funding the Poor Cooperative, Baoding City, Hebei!"#$%&'()* 1740 1244725.00 4 100.00% 2839522.50 2101.69 Laishui Funding the Poor Cooperative, Hebei!"#$%&'( 105 542000.00 2 99.00% 982466.78 5181.00 Xiaogan Women's Federation, Hubei!"#$%&'() 696 173430000.00 25 100.00% 135313931.78 34896.05 Wuhan Science and Technology Guarantee Co. Ltd, Hubei!"#$%&'( 1129 3796447.17 6 100.00% 2977471.78 11557.63 Ningxia Yanchi County Microcredit Center!"#$%&'&($)*+,-./01 Economic Development Association, Guyuan City, Ningxia!"# LPAC LPAC Project Office of Datong County, Qinghai!"#$%&'()* International Promotion Center for Economic Cooperation, Qinghai!"#$%&'( 347 1541029.57 7 90.00% 1740758.10 4294.21 Qinghai Tongren Rural Development Association!"# LPAC 1180 957500.00 75.70% 1402113.43 96957.84 Jianzha LPAC Project Office, Qinghai! UNDP!"#$(!"#$)1021 2064625.60 4 64.00% 1976241.11 (462499.30) Qinghai Huangyuan UNDP Project!"#$%#!"#$%& 8540 11659407.00 141 2 81.00% 14138921.58 453841.24 Microcredit Office of Haidong Branch, Agricultural Bank of Qinghai!"# LPAC 762 111000.00 4 100.00% 1189410.17 129025.76 Guinan LPAC Project Office, Qinghai!"#$%&'() 442 1109748.00 4 95.00% 1210581.39 2902.42 Guide Rural Development Association, Qinghai!"#$%& Guizhou Rural Development Association!"#$%&'()*+,- 541 1068327.00 4 94.03% 1067984.97 142539.08 Guanling Rural Development Association, Guizhou!"#$%&'() 2077 2611900.00 8 100.00% 2987909.68 148187.83 Guizhou Xingren Rural Development Association! UNDP 300 567586.30 7 72.00% 1183520.27 (84117.36) Puding UNDP Project Office, Guizhou!"#$%&'() 2760 1462573.00 4 1681111.25 91335.59 Guizhou Ziyun Rural Development Association 2!"#$%& 133 Note 2: Among which include 133 village-level coordinators. 16 China Association of Microfinance Annual Report 2006
!"!!! Institutinon Active Clients Loan Outstanding Loan Officer Repayment Rate Total Assets Net Profit 2006/12/31 2006/12/31 2006/12/31 2006 2006 2006!"#$%&'()* Rongjiang Project Office of World Vision, Guizhou!"#$% LPAC LPAC Project Office of Bu'erjin Women's Federation, Xinjiang!"#$%&'()*+,()-./01 Pishan Women Income Generation Program, Xinjiang!"#$%&'()*+,) Development Association of Hetian District for Poverty Alleviation, Moyu Branch, Xinjiang!"#$%&'()*+,-. 2547 4964264.00 12 99.96% 5734939.87 81423.94 Chifeng Zhaowuda Women's Sustainable Development Association, Inner Mongolia!"#$%&'()*+,-./0123 1034 2769800.00 7 100.00% 2746801.16 48294.72 Wushen Poor Area Social Development Microcredit Management Center, Inner Mongolia!"#$%&'( 1565 1026615.50 9 90.71% 3246209.95 31218.14 Hunan Xiangxi Region Rural Development Association!"#$%&'()*+,- State-level Natural Protection District Administration, Caohai, Guizhou!"#$%&'()*+,- Fenghuang County Rural Development Association, Xiangxi Prefecture, Hunan!"#$%&'()*+,-. Microloan Guarantee Center for Reemployment, Changsha City, Hunan!"#$( )!"#$%& Farmer Mutual Fund Cooperative, Baixin (Yanjia Village), Lishu County, Jilin!"#$%&'() Qingyuan Poverty Alleviation Office, Fushun City, Liaoning!"#$%&'()*+,) 316 184831598.61 10 80.00% 186762699.09 4988236.03 Lida Branch of Harbin Commercial Bank, Heilongjiang!"#$%&'() 1283 5893682.39 5 99.62% 8180051.48 544731.41 Tianjin Women's Promotion Association for Venture Creation Development!"#$%&'() 18 8000.00 1 100.00% Longyan Old Area and Poverty Alleviation Office, Fujian!"#$%& 767 15 97.86% 2448636.00 Beijing Office of Hope International!"#$%&'()*+,-./0() Green Rural Credit Project of China Project Department of Nature Protection Association of USA!"#$%&'()*%&+ 183 188715.00 80.60% Sino-Europe Natural Forest Program Microfinance Office 3 80974 463736555.12 589 463489308.64 6733529.29 Total 3!"#$%&!"#!"!#$%&!"#$%! "#$%&'()!"#$%!"#$%!"#$!"#$!"#$%!"#$%!"#$%!"#$%$&'()*+!"!#$"!"#!"#! "#$%&!"#$%&'(!"#$%!"!"#$%&'()*!"#$%& '( Note 3: Besides, CAM member institutions include Women's Federation of Kai County, Chongqing; Women Development Department of Henan Provincial Women's Federation; Wuyang Women's Federation, Henan; Town and Country Working Department of Luohe Women's Federation, Henan; Women's Federation of Jiyuan City, Henan; Women's Federation of Shangqiu City, Henan; Women Development Department of Women's Federation, Fujian; Women's Federation, Jianning County, Fujian; Women's Federation, Pingnan County, Fujian; Women's Federation, Ninghua County, Fujian; Women's Federation, Qingliu County, Fujian; Zhongan Xinye Venture Investment Co. Ltd., Shenzhen; Postal Saving Bureau of State Post Bureau; Beijing Weijin Puhui Science & Technology Development Company; Development Department of ACWF; Beijing Poverty Alleviation Fund for Rural Development; Citi Microcredit Training Center; RDI of CASS; CICETE. China Association of Microfinance Annual Report 2006 17
!" Q _~ä~ååé= püééí ASSETS 2006.12.31 2005.12.31 RMB RMB! Current assets! Cash and cash equivalent 1,372,268.55 748,372.43! Short-term investment! Account receivable! Paid-in advance Inventory! Prepaid expenses!"#$"%&'( Long-term investments maturing within one year!"# Other current assets!"# Sub-total of current assets 1,372,268.55 748,372.43! Long-term investment!"# Total long-term investments! Fixed assets!"# at cost 69,484.00 69,484.00! Less: Accumulated depreciation 20,816.46 8,309.34!"# Net book value 48,667.54 61,174.66! Construction in progress!" Cultural heritage assets!"# Disposal of fixed assets!"# Sub-total of fixed assets 48,667.54 61,174.66! TOTAL ASSETS 1,420,936.09 809,547.09!"#$% LIABILITIES and EQUITY! Current liabilities!"# Sub-total of current liabilities! Long-term liabilities!"# Sub-total of long-term liabilities! Total liabilities Net assets!"#$ Non-restrictive net assets!"# Restrictive net assets 1,420,936.09 809,547.09!" Net assets 1,420,936.09 809,547.09!"#$%&' TOTAL LIABILITIES and EQUITY 1,420,936.09 809,547.09 4!"#$#%&'()* Note 4: Both Balance Sheet and Income Statement were consolidated based on the financial reports submitted by member institutions. 18 China Association of Microfinance Annual Report 2006
Q fååçãé= pí~íéãéåí ITEM Year 2006 Year 2005 RMB RMB INCOME! Donation income 1,480,234.81! Subscription income!"# Services income!"# Sale income!"# Subsidy income! Investment income! Other income! TOTAL INCOME 1,480,234.81 EXPENSES!"# Operation cost! Administrative expenses 868,845.81 495,806.46! Financial expenses! Other expenses! TOTAL EXPENSES 868,845.81 495,806.46!"#$%&!"# Restrictive and non-restrictive net assets!"# Changes in the amount of net assets 611,389.00-495,806.46 China Association of Microfinance Annual Report 2006 19
!! 2007 289!"#$%&'()* +,!"#$%& '!"#$%&'()*+,-./01!"!"#!" 2006 12 31!2006!"#$%&!'$()*!"#$%&'(!"#$%&'()*!"#$%&'()*+,-./0!"# 1!"#$%&'()*+,-'.!"#$%&'()*+,-./0123," 2!"#!"# 3!"#$%$&!"#$%!"#$%&'()* +,-./01232'(456!"#$%&'()'*+,-./0!"#!"#$%#&'()*+,-./01234!"# $%&'()*+,-./01!"#$%&'!"#$% &'(!"#$%&'()*+,-./01!"#$%&'()*"+!"#$%&'()*+,-./0&-12*345!"#$%&!"#$%&'()!"#$!"#$ %&'!"#$%&' ()*+,-./!"#$%&'()*+!"#$%&'( )"*+%,!"#$%&'()$*!"!"#$%&'()*!!"#$%&'()*!!"!"#$%&'(!"#$%&'()*!"#!"#$%&'()*+ 2006 12 31!"#$% 2006!"#$%&'!!"#$%&'()*+!"#$%&'(!"#$%&'(!"#$!%&'(!"#!"#$%&'()*+,-./0123!"#$%&'()!"#!*+,-. ================!"#$%&'()*+,-=====!"#$ =!"#$ 2007 4 29 20 Association of Microfinance Annual Report 2006
Auditing Report JYSZ 2007 No. 289 To: Poverty Research Center of Chinese Academy of Social Sciences (hereinafter referred to as CASS), and China International Center for Economic & Technical Exchanges (hereinafter referred to as CICETE): We audited the attached financial statements of China Association of Microfinance (hereinafter referred to as CAM), including Balance Sheet dated on December 31, 2006, Portfolio Report of Year 2006, and accompanying notes to the financial statements. 1. The Responsibility of Management for Financial Statements To compile financial statements according to the regulations of "Accounting Standards for Non-Profit Organization" is the responsibility of CAM's management. The responsibilities include: (1) in order not to make financial statements significantly misstated because of frauds or errors, designing, implementing and maintaining internal control related to compiling financial statements; (2) choosing and using proper accounting policies; (3) making reasonable accounting estimation. 2. The Responsibility of CPAs Based on the implemented auditing work, our responsibility is to express auditing opinion for the financial statements. We implemented the auditing work according to the regulations of the auditing standards of China Certified Public Accountants. To obtain reasonable guarantee for the financial statements to be or not to be significantly misstated, the auditing standards of China Certified Public Accountants require us to abide by the professional ethics, plan and implement auditing work. The auditing work involves in implementing auditing procedures so as to obtain auditing evidences for related amounts and disclosure of the financial statements. The choice of auditing procedures depends upon the judgment of CPAs, including risk appraisal procedure for the significantly misstated financial statements arising from frauds or errors. When undertaking risk appraisal, we considered internal control related to compiling financial statements in order to design proper auditing procedure. But our purpose was not to express opinion on the effectiveness of internal control. Moreover, the auditing work includes appraising the suitability of the accounting policies chosen by management and the rationality of the accounting estimation, and evaluating the whole content of the financial statements. We believe that the auditing evidences obtained by us are enough and proper, which provide the basis for expressing auditing opinion. 3. Auditing Opinion We conclude that the CAM's financial statements are compiled according to the regulations of "Accounting standards for Non-Profit Organization", which fairly reflect the CAM's financial situation dated on December 31, 2006, financial status of income and expenses of Year 2006. 4. Highlight Events Besides we remind the users of the financial statements that the CAM hasn't been registered as an entity up to now so that it cannot open the appropriative fund account and Poverty Research Center of CASS and CICETE have not kept this account solely. The above two units are responsible for the integrality of auditing financial data, and the report of CAM is consolidated by the reports of the two units. Beijing, China Certified Public Accountant of China: Certified Public Accountant of China: April 29, 2007 China Association of Microfinance Annual Report 2006 21
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hina Association of Microfinance Annual Report 2006
Introduction of CAM As an effective method for poverty alleviation and a financial innovation, microcredit has experienced over ten-year process of experimentation, demonstration and expansion. As we know, most of the very first domestic MFIs engaging in microcredit experiments are those NGOs or NPOs, relying on the aid from international organizations or the support from the local governments. Although these MFIs have played an active role in facilitating the development of microcredit in China and made a great contribution for poverty alleviation, they can hardly achieve sustainability owing to the restriction by policy and law, the constraint about their own system and capability, and the insufficiency of fund source etc. We believe that microcredit, as an effective measure for poverty reduction, is unable to realize sustainable development and everlasting function until it is included in the whole framework of financial reform and development of China. At the domestic microcredit workshops during the past two years, some researchers and practitioners of microcredit put forward the suggestion to set up a guild or a network for many times, the voice for which was higher especially in the international workshop of microcredit held in Beijing in September of 2003. The relevant domestic departments and international organizations attached importance to this suggestion, subsequently, UNDP assisted PBOC to complete microcredit policy research report, in which the supervisory policy pertaining to microcredit guild was raised, which advised the guild to conduct self-discipline and the government to offer certain policy guidance. At the end of 2003, in order to accommodate the development needs of microcredit and with reference to the advice in the policy research report of PBOC, Rural Development Institute of CASS that was the earliest one to undertake microcredit experimentation, demonstration and research in China, and CICETE that governed foreign-aid microcredit program with the largest scale in China, decided to initiate the formation of microcredit guild or network in China, and later obtained strong support from Development Department of ACWF. After the request for the opinion of Ministry of Civil Affairs, our three institutions that had an excellent performance in microcredit determined to jointly launch on setting up the CAM. This CAM has become one cooperative network organization of MFIs with the goal of poverty alleviation, the key functions of which include the following five aspects: To conduct the research on microcredit issues, and undertake dialogue and communication with relevant government departments, and disclose the operation performance of MFIs to financial supervisory departments and the public; To develop self-discipline by setting industry standards and carry out the rating for institutions; To offer relevant technical assistance like training and consultation for members; To encourage information, experience and staff exchanges; To undertake dissemination and help MFIs to raise fund. Before the formal registration of the CAM, we will conduct daily work in the loose form as a network depending on the preparatory group members from CICETE, CASS and ACWF as well as the secretariat of CAM. We wish to continuously obtain policy support from government departments and receive assistance from more international organizations and all circles in China. We will make an effort to set up the CAM as soon as possible in order to exert its function, which can promote the development of microcredit for poverty alleviation in China, and help more poor people to improve their life and make a contribution to achieve the objective of all-round construction of a harmonious society.
China Association of Microfinance Annual Report 2006 :!"#$%&!'( 28!" C 11 Address: Floor 11, Section C, Yonghe Plaza, No. 28, Andingmen Dongda St., Dongcheng Dist., Beijing Post Code: 100007 Fax: 010-84000608 Tel: 010-84000595 84000605 Email: baichengyu@cicete.org zhuxiaoyi@chinamfi.net Website: http://www.chinamfi.net