22.

LONG-TERM PAYABLES

Zhejiang Jinko Finance Leasing Co., Ltd. (“Zhejiang leasing”) was a wholly owned subsidiary of the Company. On November 7, 2016, the Company disposed Zhejiang Leasing with the consideration of RMB183 million (USD26.4 million). The transaction was closed on November 30, 2016. Loss of disposal amounted to RMB15.2 million (USD2.2 million) was recognized. Until June 30, 2017, RMB15.9 million (USD 2 million) of the consideration has been collected.

During the year ended December 31, 2015 and 2016, the Company sold certain module equipment (“leased assets”) to Zhejiang Leasing (the “purchaserlessor”) and simultaneously entered into one or three-year contracts to lease back the leased assets from the purchaser-lessor. Pursuant to the terms of the contracts, the Company is required to pay to the purchaser-lessor quarterly lease payment over three years and is entitled to obtain the ownership of these equipment at a nominal price upon the expiration of the lease. The accounting was eliminated as intercompany transaction in the consolidated financial statements of the Company in previous periods. Upon the disposition of Zhejiang leasing, the lease is classified as capital lease.

In May 2017, the Company sold certain machinery and equipment (“leased assets”) with carrying amount of RMB 201.1 million to a third party (the “purchaser-lessor”) for consideration of RMB 150 million and simultaneously entered into a three-year contract to lease back the leased assets from the purchaser-lessor. Pursuant to the terms of the contract, the Company is required to pay to the purchaser-lessor quarterly lease payment over three years and is entitled to obtain the ownership of these equipment at a nominal price upon the expiration of the lease. The lease is classified as capital lease. In connection with this sale-leaseback transaction, the Company recognized a loss of approximately RMB 51.1 million, which is being deferred and amortized in the unaudited condensed consolidated statements of comprehensive loss over the remaining useful lives of the leased assets. Through the leaseback, the Company substantially retains all of the benefits and risks incident to the ownership of the property sold, therefore, the sale-leaseback transaction is merely a financing with the underlying assets as collateral.

As of December 31, 2016 and June 30, 2017, the net value of the leased assets are:

	2016		2017
	December 31		June 30
	RMB		RMB

Equipment		159,980,000		279,980,000
Less: accumulated depreciation		(11,440,625)		(18,831,268)
Net Value		148,539,375		261,148,732

As of June 30, 2017, future minimum payments required under non-cancellable capital and financing lease are:

Twelve months ended June 30,	RMB
2018		105,638,784
2019		77,196,187
2020		52,846,761
Total minimum lease payments		235,681,732
Less: Amount representing interest		(8,545,222)
Present value of net minimum lease payments		227,136,510
Current portion		101,443,202
Non-current portion		125,693,308