On behalf of the board of directors (the "Board" or the "Directors") of China Agri-Products Exchange Limited (the "Company"), I am pleased to present to our shareholders the consolidated financial statements of the Company and its subsidiaries (the "Group") for the year ended 31 December 2009.

The Group recorded a consolidated turnover of approximately HK$104.1 million, representing 38.0% decrease from HK$168.1 million recorded for the previous financial year.

The loss attributable to equity owners of the Company for the year ended 31 December 2009 was approximately HK$296.3 million compared to the loss of approximately HK$613.4 million for the previous year.

Agricultural Produce Exchanges

Leveraging on our experience in the specialised property rental business in respect of agricultural produce exchanges, the Group captured the opportunities arising during the first half of the year under review to acquire two agricultural wholesale markets in Yulin, Guangxi Province and Xuzhou, Jiangsu Province, the People's Republic of China (the "PRC"). Completion of the acquisition of these two agricultural produce exchanges in March of last year enables the Group to create synergy through a centralised brand to operate agricultural produce exchanges in different parts of the PRC.

The agricultural wholesale market complex in Yulin, Guangxi Province with two-storey market stalls and a multi-storey godown commenced operation in the last quarter of the year. Its contribution to the Group's turnover in 2009 was therefore relatively small, but the Group expects this marketplace will be a significant income generating unit for the Group in the future and represents significant potential to our future earnings.

The agricultural wholesale market in Xuzhou, Jiangsu Province is the major marketplace for the supply of fruit and seafood in Xuzhou city. This marketplace provided steady contribution to the Group's turnover in 2009 following its integration in March with the Group's other agricultural produce exchanges.

武漢白沙洲農副產品大巿場有限公司 (Wuhan Baisazhou Agricultural By-product Grand Market Company Limited) ("Baisazhou") owns and operates the Group's agricultural produce marketplace in Wuhan, Hubei Province, the PRC and acts as distribution channel for a diversified client base in the southern and central parts of the PRC. This marketplace provides its customers with a systematic logistics flow in order to maximise the customers' throughput.

Restaurant Operation

The Group's restaurant operation in Shenzhen and Beijing continued to generate steady income for the Group and total turnover of this operation was approximately HK$28.7 million for the year ended 31 December 2009 (2008: approximately HK$25.8 million).

Corporate Strategies

The PRC government has been deepening the country's agricultural reform which is aimed, in particular, to increasing peasant's income by enhancing their agricultural production capacity, advancing the building of new rural areas as well as developing modern agriculture. Measures undertaken by the government have proved to be highly beneficial to the agricultural industry, and the Group is optimistic about the long-term development of the agricultural upstream, midstream and downstream businesses in the PRC in the years to come.

In order to support the State's "Vegetable Basket Project", the Group continues to focus on intensifying its investment in agricultural produce wholesale markets in the PRC. In addition, the Group continues to endeavour to build and expand its network of wholesale market platforms by establishing partnerships in the PRC so as to increase market share. Besides, the Group will seek to exploit any strategic business development opportunity in the management of agricultural produce wholesale markets in different cities and provinces in the PRC as well as expanding the overall size of the Group's existing markets, operates thereby increasing their stability and sustainability. We continue to strive for sustained improvement and the delivery of long-term value to shareholders.

Appreciation

Finally, I would like to take this opportunity to thank our customers and business partners for their continued support of the Group over the past year. I would also like to thank my fellow board members and staff at all levels for their dedication and hard work.

Chan Chun Hong, Thomas
Chairman

Hong Kong, 16 April 2010

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