Ending Hunger & Poverty

Caring for the Earth

C-5, Shanghuanjing,, No. 8, Wuxing 2 RoadWuhou Science & Technology ParkChengdu, Sichuan, China 610045Tel: +86-28-85373997Fax: +86-28-85373667info@hpichina.orghttp://www.heiferchina.org/

Contact Information

Registration No.: (Chuan) Civil Affair No. 110088

If you are interested in being a Heifer China volunteer, please download the application form from our website and send it to volunteer@hpichina.org or mail/fax to our office.

No.1, World AvenueLittle Rock, AR 72201 USATel: +1-800-422-0474http://www.heifer.org/

Heifer International

Heifer International – Hong Kong

Heifer International China Program

Sichuan Haihui Poverty Alleviation Service Center

Annual Report Fiscal Year 2011(July 2010 – June 2011)

Room 204, Building A1, Liyuan Road, Luwan District, Shanghai, China, 200023Tel: +86-21-33130859Fax: +86-21-33130859 ext. 12info@hpichina.orghttp://www.heiferchina.org/

1003, HSH Mongkok Plaza, 800 Nathan RoadKowloon, Hong KongTel: +852 2368-0227Fax: +852 2368-0217info@heiferhk.org http://www.heiferhk.org/

Shanghai Haihui Community Livelihood Development Center

Sichuan Haihui Poverty Alleviation Service Center

Ending Hunger & Poverty

Caring for the Earth

Message from Country Director

Dear friends, partners and colleagues,

To achieve success in this changing world, organizations must learn, adjust and grow to become more

effective and efficient. Heifer China keeps doing this every day, like any mature organization does. As

we look ahead to another promising fiscal year, it's important for us to look back at what we've

achieved in the past fiscal year and recollect our mission to support families in need.

In last fiscal year's annual report, I wrote about the achievements we had made to accomplish our

mission. The work continues this fiscal year as the China program helped 5,982 families and nearly

80,000 people received necessary trainings from Heifer. We believe that "helping communities help

themselves" must be central to our strategies on behalf of vulnerable families. As the Values-Based

Holistic Community Development (VBHCD) model evolves, in this fiscal year we integrate the

principle of scale-up program impact which was newly developed by Heifer Senior Management Team

earlier this year into our project design and implementation. Vertically, we propel project participants

to reach second-level development by promoting various trainings pertinent to the development of

value chains and values-based cooperatives.

This fiscal year, we celebrated the 25th Anniversary of Heifer China and published a picture-book as a

real-project snapshot of Heifer program villages and a tool for local people to witness and understand

our work. Although the recovery from the global recession is fluctuating, it is encouraging to see that

public concerns regarding poverty alleviation and charity issues are gaining prominence as well. It

offered us an opportunity to start in-country fundraising. With support from Heifer HQ and Heifer

Hong Kong, we established the Shanghai Haihui Community Livelihood Development Center as a

resource mobilization office to promote fundraising and brand-building. At the same time, by

collaborating with Heifer Hong Kong and Heifer HQ, we made our first strategic plan on resource

mobilization for the upcoming three years. We also received study tours from Heifer USA and Hong

Kong. We've also received significant donations from channels outside of Heifer HQ and Heifer Hong

Kong.

I am very proud of the progress made with the collaborative efforts of our partners, our staff and the

project participants. I truly want to acknowledge and congratulate all of you for your dedication over

the past fiscal year. It is gratifying for me and our entire Heifer China team to see that we uphold the

same values and principles that Heifer's founder Mr. Dan West believed in when he founded this

organization.

Chen TaiyongCountry DirectorHeifer International China Program

1

Heifer International is a non-profit, humanitarian education for children, health care, improved housing organization dedicated to ending world hunger and and literally a new way of life.saving the earth by providing livestock, trees, training

What makes Heifer unique is the practice known as and other resources to help poor families around the "passing on the gift." Families receiving animals agree globe become self-reliant.to pass on the first offspring - or an appropriate

Since it began in 1944, Heifer has worked directly with equivalent - to another family in need, starting a chain 15 million families in more than 125 countries and in of giving that often touches thousands of lives. 38 U.S. states.

But Heifer International's most striking qualities are Animals from Heifer International provide milk, eggs, its simplicity and effectiveness. In short, Heifer's plowing power and other benefits that for families common-sense approach to sustainable development across the planet can mean improved nutrition, works – one family at a time.

Heifer International

——“ Not a Cup, but a Cow”

32

Heifer Vision StatementA world of communities living together in peace and equitably sharing the resources of a healthy planet.

Heifer Mission StatementTo work with communities to end hunger and poverty and to care for the Earth.

Passing on the Gift Accountability Sharing & Caring Sustainability & Self-reliance

Improved Animal Management Nutrition & Income Genuine Need & Justice

Improving the Environment Full Participation Training & Education Spirituality

Gender & Family Focus

Program Map

Xinjiang Regional Office

Tibet Regional Office

Sichuan/Chongqing Regional Office

Yunnan/Guizhou Regional Office

Anhui Regional Office

Beijing Regional Office

Earthquake Rehabilitation Office

In 1946, Heifer International sent its first assistance of Province. Since 2005, Heifer China has established six 550 high-quality dairy cows to China through the Regional Program Offices across China, including U n i t e d N a t i o n s R e l i e f a n d R e h a b i l i t a t i o n Sichuan/Chongqing, Yunnan/Guizhou, Anhui, Beijing, A d m i n i s t r a t i o n ( U N R R A ) . I n 1 9 8 4 , H e i f e r Tibet and Xinjiang. In 2008, the Wenchuan Earthquake International resumed its effort and funded three Rehabilitation Project was set up. In the same year, the projects in Sichuan (Dayi Meat Rabbit Project, Ya'an Sichuan Haihui Poverty Alleviation Service Center Dairy Goat Project and Jianyang Meat Goat Project) was formally registered as the plenipotentiary of coordinating with the Sichuan Provincial Bureau of Heifer International to manage and implement its Animal Husbandry. As the first group of donated projects in China. It was attached under the Sichuan animals, 158 breeding goats and 200 breeding rabbits Association for Science & Technology and registered were shipped from the US and UK respectively to with the Department of Civil Affairs of Sichuan project villages. In 1989, the Heifer International Province.China Office was established in Chengdu of Sichuan

History of Heifer in China

Cornerstones

Program Achievements

54

1. Programme Excellence

4. Communication and Collaboration

2. Strengthen Country Program Management System

5. Diversification of Resources

3. Triadic Model

evaluating. The goal is the successful implementation of a project through trustworthy local project partners, VBHCD is the development model used by Heifer along with the guidance of the country program. China. In this approach, development is not just about Heifer China is committed to supporting project distributing inputs but about building communities, partners' capacity building so that partners can producing deeper level impact and transformation. e f f e c t i v e l y a n d e f f i c i e n t l y d e l i v e r p r o j e c t Implementation of the VBHCD model has brought implementation through community facilitators to visible social and economic empowerment to Heifer SHGs, while maintaining consistency during the entire China communities. To achieve deeper-level impact service delivery process.through the VBHCD approach at the community level,

knowledge, methodologies and initiatives need to be further strengthened. Heifer China has been cooperating well with

government organizations and gradually establishing partnerships with NGOs. Heifer China will continue A strengthened management system is vital for the successful communication with government units and team to achieve excellence in the next five years. To like-minded NGOs, expand relationships with media, e n h a n c e t h e s h a r e d l e a d e r s h i p a n d E E C seek channels to integrate all resources available (Effectiveness, Efficiency and Consistency) mantra, through a sound communication system, and further Heifer China is committed to building a more sound strengthen the capacity of country program staff.management system. Such a system will ensure that

necessary policies are stipulated and followed by all staff, and accountability is further strengthened Heifer China, being registered as a legally separate through rules and adopted standards and practices by entity (LSE), will seek opportunities to leverage country program, project partners and communities. domestic funding through local brand building and

public relations and donor management activities. Heifer China will continue to support the fundraising The triadic model represents a continuous exchange of of Heifer HQ and Heifer Hong Kong (HHK). Heifer knowledge and resources between the country China will work closely with HQ in seeking grants program, local project partners and the project groups from international government aid agencies and other (Self-Help Groups, or SHGs), with each relationship funding sources.strengthened by co-learning, co-monitoring and co-

Key Priority Issues of Heifer China Strategic Plan (FY10-14)

Families Assisted

Original Families

Pass-onFamilies

TOTALFamilies

Animals Distributed

Project Partners

Self-Help Groups

3,127 2,855 5,982

170,164

20,908

18,005

2,900

892

452

9,711

73 301

Project partners managed to leverage other funding resources from the government or other NGO projects to strengthen Heifer project impact. As a result, local infrastructure and environment have been improved greatly. In addition to traditional income generation activities, project partners facilitated communities to conduct many series of activities such as environment protection activities, disaster preparedness and mitigation mechanisms built in communities, and mobilizing communities to conduct self-help activities to improve their solidarity and cohesion.

Poultry

Swine

Meat goat

Beef cattle

Dairy cattle

Yak

Rabbit

Trainings Given

SHG members and project partner (PP) staff received approaches so they could meet training needs arising multiple trainings covering a holistic range of topics, from communities during project implementation. and they have been counted as participants for each Various trainings enabled all SHGs to take initiative training they attended. All these activities built up on group activities such as community holistic SHGs' management capabilities, broadened their planning, community public facilities building and horizons and improved their self-reliance awareness. maintenance, women's embroidery, community The trainings also gave PPs and other stakeholders' recreational activities, group fund usage and other opportunities to learn about Heifer's values and collective decision making.

Participatory Rural Appraisal (8 hours)

Project Planning (4 hours)

Project Monitoring and Evaluation (4 hours)

HIV/AIDS (8 hours)

Human nutrition (4 hours)

Sanitation (3 hours)

Cornerstones (16 hours)

PSRP (6 hours)

Leadership (8 hours)

Group management (8 hours)

Nutrition and feeding (8 hours)

Offspring management (8 hours)

Reproduction & breeding (6 hours)

Forage management (4 hours)

Record keeping (4 hours)

Financial management (3 hours)

Sustainable Agriculture (4 hours)

Horticulture (4 hours)

Income Generation Activities (4 hours)

Commercializing & Marketing (2 hours)

Awareness(4 hours)

Project Management

Gender and Family Issues

Organizational Strengthening

Livestock Health

Accountability

Agroecology

Enterprise Development

Advocacy

Training Category Training NameTotal Number of Participants from SHGs

Total Number of Participants from PPs and Others

Community Animal Health care management (8 hours)

9,539

3,425

35,375

25,559

419

3,460

227

1,866

105

39

599

375

51

46

12

30

Ongoing Projects (not including sub-projects)

76

Project # Project Name Project Period

Number of project partners involved

Reporting (38 projects)

22-0015-22

22-0015-23

22-0015-24

22-0015-25

22-0015-26

22-0015-27

22-0015-29

22-0015-69

22-0016-04

22-0017-08

22-0017-13

22-0017-16

22-0017-17

22-0017-18

22-0017-19

22-0017-20

22-0017-21

22-0017-23

22-0017-24

22-0017-25

22-0017-26

22-0017-27

22-0017-28

22-0017-29

22-0017-30

22-0017-31

22-0017-33

22-0017-35

22-0017-36

22-0017-37

22-0017-38

22-0017-39

22-0017-40

22-0017-41

22-0017-42

22-0017-43

22-0017-67

22-0017-78

Sanba Poverty Alleviation & Environmental Protection Project

Gongbujiangda Community Development Project

Lancang Community Development and HIV/AIDS Prevention Project

Alxa Integrated Community Development Project

Reducing Poverty and HIV/AIDS through Holistic Community Development

Project at Butuo County

Lianxing Integrated Community Development and drinking water project

Yuexi Community Development and Clean Water Project

Flood Rehabilitation Project Across China

Flood Rehabilitation Project Across China

Linzhi Dairy Cattle Improvement Project

Yunnan Ethnic Group Community Holistic Development Project

Lezhi Integrated Development Project

Yuexi Beef Cattle Project

Beijing Miyun Honeybee Keeping Porject

Qusum County Community Development Project

Shouxian Meat Goat Project

Tikerbra Integrated Community Development Project

Cuomei Tibetan Community Development project

Huoshan Community Development Project

Reducing Poverty and HIV/AIDS through Holistic Community Development

Project in Zhaojue County

Livestock for Poverty Alleviation in Xipo

Butuo County Poverty Alleviation Project

Pingwu Livestock Development Project

Qinghai Lake Area Sustainable Livestock Development Project

Yang Liu Watershed Livestock Development Project

Meigu Mountainous Area Yi People Livestock Development Project

Lizhuyuan Village Livestock Development Project

Lujiang County Community Development and Poverty Alleviation Project

Gangou Agriculture & Animal Husbandry Holistic Development Project

Chengde Community Development and Poverty Alleviation Project

Chunxin Hilly Area Livestock Development Project

Poverty Alleviation Project in Dabashan Area

Tengchong Community Livestock Development and Biodiversity Conservation Project

Toksun Sustainable Livestock and Agriculture Development Project

Daxing Community Development Project

Yixian Poverty Alleviation Project

CRCF-Haihui Pengzhou Community Rehabilitation and Community Development Project

Heifer Meigu Community Building Project

FY07-11

FY07-11

FY07-11

FY07-11

FY07-10

FY07-11

FY07-09

FY03-09

FY05-09

FY05-09

FY05-09

FY06-10

FY06-10

FY06-10

FY06-10

FY06-10

FY06-10

FY06-10

FY06-10

FY06-10

FY06-10

FY07-11

FY07-11

FY07-11

FY07-11

FY06-10

FY06-10

FY07-11

FY07-11

FY07-11

FY07-11

FY07-11

FY07-11

FY07-11

FY07-11

FY07-11

FY10-13

FY11-13

1

1

1

1

1

1

1

6

1

1

5

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

2

1

1

1

1

1

1

Project # Project Name Project Period

Number of project partners involved

Active (32 projects)

22-0015-28

22-0017-44

22-0017-45

22-0017-46

22-0017-47

22-0017-48

22-0017-49

22-0017-50

22-0017-51

22-0017-52

22-0017-53

22-0017-55

22-0017-56

22-0017-57

22-0017-58

22-0017-59

22-0017-68

22-0017-69

22-0017-70

22-0017-71

22-0017-72

22-0017-73

22-0017-74

22-0017-75

22-0017-76

22-0017-77

22-0017-79

22-0017-80

22-0017-81

22-0017-82

22-0017-83

22-0017-84

Ying & Quan River Watershed Self-help Program

Heifer China Project Partner Capacity Building Project

Pingwu Nature Reserve Surrounding Area Community Development Project

Gongshan Integrated Community Development Project

Flood Rehabilitation Project in Sichuan Province

Flood Rehabilitation Project in Chongqing Area

Poverty Alleviation Project in Northeast of Sichuan Province

Songming Upland Community Sustaibable Development Project

Chengde Community Sustainable Development Project

Qusong Community Development and Capacity building Project

Ethnic Community Holistic Development Along the Jinsha (Yangtze) River Watershed

Guizhou Sansui Snowstorm Rehabilitation and Community Holistic Development Project

Achang (Mandan) Community Participatory Development and Women

Empowerment Project

Poverty Alleviation Project in Nanjiang & Tongjiang

Dabie Mountain Area Community Development Project

Hebei Holistic Community Development Project

5.12 Earthquake Jian'ge Community Livelihood and Community Rehabilitation Project

Wenchuan Earthquake Rehabilitation Umbrella Project

Zhanang Community Holistic Development Project

Zhaojue County Women Self-improving and Community Development Project

Dafengding Nature Reserve Surrounding Area Ethnic Community Development Project

Nanbu Holistic Community Development Project

Sustainable Livelihood Improvement and Holistic Community Development for the

Poor Ethnic Communities Around the Environmental Protection Areas of Yunnan

China VBHCD Advocacy and Education Project

Baoding Ecosystem Restoration and Livelihood Development Project

Sustainable Community Development Project of the Poor Ethnic Communities Along

Nu and Lancang Watersheds of Yunnan

Yilong Mountainous Community Environmentally Friendly Development Projec

Ethnic Community Sustainable Development Project in Southeast Guizhou

Poverty Alleviation and Holistic Community Development Project in Dabashan

Mountainous Area

Sangri Community Holistic Development Project in Tibet

Chengde Sustainable Agriculture Project

Self-help Community Development Project in North Anhui

FY07-09

FY07-11

FY08-12

FY08-13

FY08-13

FY08-13

FY08-13

FY08-13

FY08-13

FY08-13

FY09-13

FY09-13

FY09-13

FY09-13

FY09-14

FY10-14

FY10-13

FY09-15

FY10-14

FY10-14

FY10-14

FY10-14

FY10-15

FY10-12

FY11-16

FY11-16

FY11-16

FY11-16

FY11-16

FY11-16

FY11-16

FY11-16

1

1

1

1

1

1

2

1

2

1

3

1

1

2

3

2

1

10

1

1

1

1

1

1

2

3

1

2

3

1

1

2

98

Project Partners List

Reporting

Huoshan County Poverty Alleviation Office

Liannan Yao Autonomous County Bureau of Agriculture

Lujiang County Animal Disease Prevention and Control Center

Shexian Service Center for Animal Husbandry and Fishery

Shouxian County Poverty Alleviation Association

Yingzhou District Foreign Agricultural Investment Office of Fuyang Prefecture

Yuexi County Bureau of Animal Husbandry

Anhui Regional Program

Chengde County Bureau of Agriculture and Animal Husbandry

Heifer Beijing Miyun Service Center

Weichang County Bureau of Agriculture and Animal Husbandry

Yixian Bureau of Animal Husbandry

Beijing Regional Program

Butuo County Bureau of Agriculture and Animal Husbandry

Dayi County Rabbit Association

Lezhi County Association of Rural Development

Meigu Foreign Capital Project Development Office

Nanjiang Yellow Goat Development Association

Pingwu County Bureau of Animal Husbandry & Veterinary Medicine

Wanyuan City Bureau of Food & Animal Husbandry

Xide County Bureau of Animal Husbandry

Zhaojue County Bureau of Animal Husbandry

Sichuan-Chongqing Regional Program

Bengbu City Pig Association

Linxiang City Bureau of Animal Husbandry and Aquatic Products

Nanbu County Bureau of Animal Husbandry

Songming County Bureau of Animal Husbandry

Xuanhan County Dairy Cattle Cooperative

Yubei District Station of Animal Husbandry and Veterinary Medicine

Cross-Region Area (all regions)

Cuomei County Bureau of Agriculture and Animal Husbandry

Gongbujiangda County Bureau of Agriculture and Animal Husbandry

Linzhi Prefecture Bureau of Agriculture and Animal Husbandry

Qusong County Bureau of Agriculture and Animal Husbandry

Tibetan Regional Program

Alxa SEE Ecology Association

Jhosang Community Development Association

Turpan Hunarjin Association

Xinjiang Regional Program

Heifer China Deqing County Project Office

Lancang County Association for Ecology and Animal Raising

Longyang District Bureau of Animal Husbandry

Shangrila County Association of Agro-ecology

Songming County Bureau of Animal Husbandry

Tengchong County Bureau of Animal Husbandry

Yulong Cattle and Goat Raising Association

Yunnan-Guizhou Regional Program

Active

Hefei City Nong'an Livestock & Poultry Research Institute

Huoshan County Center for Environment Protection & Poverty Alleviation

Huoshan County Poverty Alleviation Office

Jieshou City Poverty Alleviation Office

Lixin Public Public Welfare Promoting Association

Yingzhou District Foreign Agricultural Investment Office of Fuyang Prefecture

Anhui Regional Program

Chengde County Bureau of Agriculture and Animal Husbandry

Hebei Province Laiyuan County Livestock Development & Service Center

Weichang County Bureau of Agriculture and Animal Husbandry

Yixian Bureau of Animal Husbandry

Beijing Regional Program

Jiangjin District Bureau of Animal Husbandry & Veterinary medicine

Meigu Foreign Capital Project Development Office

Nanbu Association for Rural Development

Nanjiang Yellow Goat Development Association

Pingwu County Bureau of Animal Husbandry & Veterinary Medicine

Poverty and Environment Research Association of Dabashan Mountain

Wanyuan City Station of Livestock and Poultry Breeding Improvement

Yilong County Rural Development Association

Youth League of Lizhou District of Guangyuan County

Zhaojue County Bureau of Animal Husbandry

Sichuan-Chongqing Regional Program

Qusong County Bureau of Agriculture and Animal Husbandry

Sangri County Bureau of Agriculture and Animal Husbandry

Zhanang County Bureau of Agriculture and Animal HusbandryTibetan Regional Program

Turpan Hunarjin AssociationXinjiang Regional ProgramCivil Service Center of Deqin County Government

Kaili City Bureau of Animal Husbandry and Veterinary Medicine

Lancang County Association for Ecology and Animal Raising

Longling County Bureau of Animal Husbandry

Longyang Branch Baoshan Administration Yunnan Gaoligongshan Nature Reserve

Longyang District Bureau of Animal Husbandry

Lujiang Prefecture Lushui County Bureau of Animal Husbandry & Veterinary Medicine

Sansui County Bureau of Agriculture and Poverty Alleviation Development

Shangrila County Association of Agro-ecology

Songming County Bureau of Animal Husbandry

Tengchong County Bureau of Animal Husbandry

Township Government of Xuedong, Guizhou Province

Yulong Cattle and Goat Raising Association

Yunnan-Guizhou Regional Program

Earchquake Rehabilitation Regional Program

Baishuihe Natural Reserve Administrative BureauEarchquake Rehablitation Regional Program

Anxian County Bureau of Animal Husbandry & Veterinary medicine

Baishuihe Natural Reserve Administrative Bureau

Beichuan Qiang Autonomous County Bureau of Animal Husbandry & Veterinary Medicine

Guangyuan City Lizhou District Poverty Alleviation and Development Office

Guanyuan City Chaotian Bureau of Animal Husbandry and Food

Jiangyou City Bureau of Animal Husbandry & Veterinary medicine

Lixian County Bureau of Animal Husbandry & Veterinary Medicine

Pengzhou City Bureau of Animal Husbandry

Wangcang County Bureau of Animal Husbandry

Youth League of Jiange County

10

ASSETS

(RMB)

Budget Analysis

12,934,431

(RMB)

Top Priorities for Next Fiscal Year

1.Scaling up program impact

2.Grow and diversify revenue and support base

3.Strengthen core global and LSE operating systems

Design and implement projects in line with Heifer’s Vision 2020 and the principle of scale-up the program impact. All new projects will support at least 1,000 families and clustering to achieve critical mass. Other stakeholders (GOs, NGOs and private) are engaged, ensuring local ownership and involvement and allowing additional resources to be leveraged. Policy engagement is achieved through assets-based advocacy (educating others about our model and innovations). The country program continues to build up capacity for PPs and Community Facilitators (CFs) to be able to manage big projects. POG will be implemented faster through innovative approaches. Each project achieves three levels of impact (deeper level, ground level and external impact) and makes positive changes in specific issues such as value chains, social capital, gender equity, nutrition and income, environment, etc.

CPO works with HQ and team to ensure financial support to increase our projects and number of families served. While continuing to support resource mobilization of HQ and HHK, Heifer China will work with team for in-country resource mobilization to tap government resources, corporate funders and individual or private donors by making good use of current LSEs in Sichuan and Shanghai and Haihui Fund in Shanghai United Foundation. Work with regional offices to mobilize local resources for PPs and SHGs. Seek for registration of a foundation which allows Haihui/Heifer China to raise fund in the public.

Update LSE Operation system in line with Strengthened Core Global Operating System in collaboration with HQ departments. Update LSE policies, procedures and guidelines and monitor compliance. Support HQ in development and implementation of strengthened core global operating system, which will include finance, HR, legal, M&E, etc. To continuously scrutinize all units of LSE for efficiency in processes and structures to shift from a culture of effort to a culture of performance.

Funding Partners

In this fiscal year, Heifer projects implemented by Sichuan Haihui Poverty Alleviation Service Center are funded by the following organizations:

Heifer Internationalwww.heifer.org

Heifer Hong Kongwww.heiferhk.org

The American Chamber of Commerce in Shanghaiwww.amcham-shanghai.org

Industrial and Commercial Bank of Chinawww.icbc-ltd.com

China Merchants Charitable Foundationwww.cmcf.org.cn

Shenzhen Civil Affairs Bureauwww.szmz.sz.gov.cn

11

Cash and cash equivalents

Accounts and interest receivable

Property and equipment, net of accumulated depreciation

Total Assets

7,604,522.19

5,112,138.30

894,224.01

13,610,884.50

LIABILITIES AND NET ASSETSLiabilities

Account payable

Accrued expenses

Total liabilities

246,401.91

1,033,266.42

1,279,668.33

Net assetsUnrestricted

Total net assets

12,331,216.17

12,331,216.17

Total liabilities and net assets 13,610,884.50

Revenues, gains and other supports

Contributions from Heifer International Headquarter in U.S.A.

Contributions from Heifer Hong Kong

Other contributions

Other

Total

14,953,036.82

15,321,542.67

392,618.04

26,870.09

30,694,067.62

Expenses and losses

Program Services

Publicity and fundraising

Management and general

Total

27,193,370.93

913,487.36

2,059,940.10

30,166,798.40

Change in net assets

Net Assets, Beginning of Year

Difference of USD Amount due to exchange rate difference

Net Assets, End of Year

527,269.22

11,803,946.95

12,331,216.17

Expenses Based on Functional Allocation

TOTAL EXPENSE

Program Services

Publicity and fundraising

Management and general

100%

90%

3%

7%

30,166,798.40

27,193,370.93

913,487.36

2,059,940.10

Program Services

Publicity and fundraising

Management and general

(RMB)

thAug. 8 , 2010:

thOct. 15 , 2010:

Oct. 2010:

thNov. 9 , 2010:

th thFrom Dec. 6 to 7 ,

thDec. 12 , 2010:

rd thFeb. 23 to 25 ,

thFeb. 26 , 2011:

th thMarch 4 to 6 , 2011:

thMarch 17 , 2011:

thMarch 25 , 2011:

th thFrom April 4 to 6 , 2011:

thMay 20 , 2011:

with the cooperation with Shanghai United Foundation, Haihui United Fund was officially established

in Shanghai, which can further broaden domestic fundraising channels.

all the board members and staff from Sichuan Haihui Poverty Alleviation Service Center celebrated

Ms. Jo Luck's winning on the 2010 World Food Prize. Ms. Jo Luck, the former president and CEO of Heifer

International was presented the award due to her great contribution to ending world hunger and poverty.

invited by Shanghai Civil Affairs Bureau, Chen Taiyong, Heifer China Country Director, attended "Aid

Xinjiang" (Social Organizations, Social Work and Community) Project planning. Mr. Yu Zhengsheng, Party Secretary

of Shanghai Municipality, and Mr. Zhang Chunxian, Party Secretary of Xinjiang Province, encouraged Haihui (Heifer

China) to create a scientific model for local community development.

Ambassador Patricia M. Haslach, Director of Office of the Global Hunger and Food Security

Initiatives of U.S. Department of States, along with Mr. William Klein, Deputy Director of Office of Chinese and

Mongolian Affairs Office of U.S. Department of States, Mr. Dave Moore, First Secretary of Economic Sector of US

Embassy in China paid a visit to Heifer project village ----Renyizhuang of Yixian County, Hebei Province.

4 guests from Danone Group visited Heifer China Earthquake Rehabilitation Umbrella Project

(ERP) site - Anxian County and a former Heifer China project site – Hongya. They asked the information on local

families' cow rearing, cow feeding and family income. Then they visited the cow-rearing cooperative set up by Self-

help Group members.

Heifer China Tengchong Community Livestock Development and Biodiversity Conservation Project

won the "China Merchants Group Innovative Poverty Alleviation Action Award". On 13th, China Merchants Group

Charity Foundation signed initial cooperation agreement with Heifer China on the award ceremony.

Mr. Pierre Ferrari, new CEO of Heifer International, and Mr. Mahendra Lohani, Vice President of

Asia/Pacific, visited two Heifer China projects in Dayi and Beichuan Counties.

Shanghai Haihui Community Livelihood Development Center was officially established to mobilize

more resources to support the implementation of Heifer projects in China.

Heifer China attended the 2nd National NGO Fair and shared its successful model and

practical experience in the field of poverty alleviation. Meanwhile, Heifer China also learned from other NGOs on

some aspects such as Corporate Social Responsibility and resource mobilization, etc.

Eli Lilly Global Leadership Conference was held in Shanghai. Elanco, as one division of Eli Lilly

Company and one of top ten biggest animal health companies in the world, declared its support to a new Heifer China

project in Weichang County, Heibei Province.

a ceremony was held in Y.K. Pao School to celebrate the success of Heifer China "Read to Feed"

Program implementation. It symbolized Heifer China successfully piloted this school fundraising program in

Shanghai.

Heifer China Resource Mobilization Strategy Plan Workshop was held in Shanghai, in

which the visions for 2014 and 2020, key issues were identified and strategic plan was made.

Crédit Agricole CIB's Asia CEO Mr. Patrice Couvegnes, Heifer Hong Kong Chairman Mr. Antony

Leung and Heifer China Country Director Mr. Chen Taiyong visited the families in Jiange County, Sichuan, one of

the earthquake reconstruction areas. Crédit Agricole CIB has continued its effort to support the Heifer's projects in

earthquake-stricken area and impoverished mountain communities in Sichuan after funding the successful Heifer

project in Yunnan.

Significant Events

August 28th, 2010 was a memorable day for villagers in Manlei Community of

Teng Chong, Yunnan Province. With the help of Heifer China, the villagers built

an eco-bathhouse with a 30-tube solar water heater for 10 people. From then on,

the villagers in Manlei could take a hot water shower.

Manlei used to be a long-term marginalized community and external world paid

less attention to it. When they completed daily farm work, they had no place to

take a shower; instead, they could only get a basin of cold water to clean

themselves. After Heifer project was launched in the village in February 2008, the

villagers have changed a lot in ideology through the systematic livestock

technology training, Heifer's Cornerstones and new rural construction training. With

the help of Heifer, villagers built a new irrigation channel through the mountain and set

up their own bathhouse in the village. They held a SHG meeting in which they reached an

agreement that 1 Yuan maintenance fee would be charged per person for each shower. Half of it was taken to pay the keeper's

salary, the other half was used to increase SHG fund.

An elderly villager held one Heifer project officer's hand and said,"I've never imagined that our village would experience

such a great change. I haven't expected that I have a chance to take a hot water shower in my life. Thank you very much!"

12

Success Stories

We Can Take a Shower Now

March is always a busy month for farmers in Turpan to pull out the grape vines

from underneath the earth for a whole winter up to the trellis. On March 10th,

2011, farmers in Gongxiang Village of Qiatekale Township managed to take

time for a cheerful POG ceremony. On the very day, 38 Heifer families

fulfilled their commitment to passing on their gifts to other needy farmers.

Gongxiang Integrated Community Development Project was started at the

beginning of 2008. After nearly three years of implementation, project

participants' livelihood has been improved noticeably. Ms. Hanizrerhan

expressed herself with gratitude: "All my three daughters get to go to school

thanks to Heifer. My eldest daughter is going to graduate from an education

institute soon. Heifer helps us increase our income by raising cattle; what's

more cattle manure is used to fertilize our land. Plus, we can drink milk every day now. " Talking about passing on the gift,

she added excitedly, "More people can benefit from pass-on, which is just great!"

Tuohudi, Chief of the Turpan Hunarjin Association (a Heifer project partner) mobilized participants with the twelve

Cornerstones during the ceremony. Pass-on and recipient participants, project partner and Heifer staff happily danced the

Uigur ethnic traditional dance together, expressing the common joy of people from different ethnic groups. This spring

witnesses the harvest of Heifer’s spirituality passed on from family to family.

Harvest in Spring