The IAP numerical annual climate prediction system has been presented in this paper. In order to evaluate this annual prediction system, annual ensemble hindcast experiments over a 21-year period from 1980 to 2000 have been done. Systematic assessment shows that this annual prediction system has higher predictability for summer climate in tropic than in extra-tropic area, and higher predictabilities over ocean than over land for the fields of precipitation, sea level pressure and surface air temperature; for 500 hPa geopotential height field, the predictability assuming a zonal distribution decreases from tropic to middle-high latitudes, and in China it is the highest among those of all fields. Correlation analysis shows that the prediction ability of IAP annual prediction system to summer temperature is higher than that to precipitation, and the prediction skill can be remarkably improved by the correction system. Furthermore, the comparison between annual and extraseasonal hindcasts indicates that precipitation hindcasted extraseasonally is better than that done annually, and the major discrepancy exists in middle-high latitudes.