29.

RELATED PARTY TRANSACTIONS AND BALANCES

(a) Related party balances

Outstanding amounts due from/to related parties as of December 31, 2016 and June 30, 2017 were as follows:

	2016		2017
	December 31		June 30
	RMB		RMB
Accounts receivable from related parties:
Accounts receivable from Gansu Heihe Hydropower Industrial Investment LLC. (" Gansu Heihe", in which the Group owns 9% equity interests)		44,616		44,616
Accounts receivable from Jiangxi Jinko Engineering for sales of solar modules		1,414,039,443		786,599,753

Advances to related parties
Advances to ReneSola Ltd.		661,788		-

Notes receivables from related parties:
Notes receivables from Jiangxi Jinko Engineering for sales of solar modules		610,200,000		600,000,000

Other receivables from related parties:
Advances of travel and other business expenses to executive directors who are also shareholders		68,106		23,059
Other receivables from Jiangxi Jinko Engineering for miscellaneous transactions		16,704,113		7,833,396
Other receivables from Jiangxi Jinko Engineering for provision of guarantee		62,352,655		61,902,163
Other receivables due from Sweihan Solar Holding Company		-		12,532,640
Other receivables due from Sweihan PV Power Company P.S.J.C		-		40,192,255

Other assets from related parties:
Other assets from Jiangxi Jinko Engineering for provision of guarantee		173,375,586		158,062,271

Total		2,277,446,307		1,667,190,153

Accounts payable due to a related party:
Accounts payable due to a subsidiary of ReneSola		-		688,907

Advances from related parties:
Advances from Jiangxi Jinko Engineering for sales of solar modules		60,541,490		76,089,360

Other payables due to a related party:
Other payables to Desun for leasing of land and buildings		7,528,551		8,628,855
Payable of travel reimbursement		-
Other payables due to Jiangxi Jinko Engineering for payments on behalf of the Company		68,505,022		4,305,734
Total		136,575,063		89,712,856

(1)

Advances of travelling and other business expenses to executive directors who are also shareholders represent the amounts the Company advanced to them for expected expenses, charges and incidentals relating to their business development activities.

(2)

Balances due to related parties are interest-free, not collateralized, and have no definitive repayment terms.

(b)

Related party transactions

In connection with the Company’s disposal of JinkoSolar Power downstream business in 2016, the Group entered into a master service agreement with Jiangxi Jinko Engineering under which the Group agreed to provide guarantee for Jinko Engineering’s financing obligations under its separate loan agreements. In the event that Jiangxi Jinko Engineering fails to perform its obligations under the loan agreements or otherwise defaults thereunder, the Company will become liable for Jiangxi Jinko Engineering’s obligations under the loan agreements, which amounted to RMB 6.6 billion (US$967.7 million) as of June 30, 2017. The Company will charge Jiangxi Jinko Engineering service fees for the debt payment guarantee service according the master service agreement.

In addition, according to the side agreement signed among the Company, Jiangxi Jinko Engineering and investors of Jiangxi Jinko Engineering (the original redeemable preferred shareholders of JinkoSolar Power), the investors of Jiangxi Jinko Engineering will have the right to redeem the common shares of Jiangxi Jinko Engineering held by them, and, as a result of a guarantee issued by the Company, in the event that Jiangxi Jinko Engineering fails to perform its redemption obligations, the Company will become liable for Jiangxi Jinko Engineering’s obligations under the redemption, which amounted to US$297.3 million as of December 31, 2016. The Company will also charge Jiangxi Jinko Engineering service fees for the redemption guarantee service according the master service agreement. On June 22, 2017, Jiangxi Jinko Engineering and all its investors reached a new Articles of Association in which terms and clauses related to the Common Share Redemption Guarantee were removed. Hence, upon the sign-off, management reversed unamortized redemption guarantee liabilities amounted to RMB22,119,127 as well as the corresponding receivables amounted to RMB 20,409,535. Difference between the guarantee liabilities and the corresponding assets amounted to RMB1,709,592 was recognized as other income in the six months ended June 30,2017.

Pursuant to the master service agreement, guarantee service fee would be settled semi-annually, and the management of the Company believes the guarantee fee charges are at market rates.

As of December 31, 2016 and June 30, 2017, the Company recorded the guarantee fee income receivable amounted to RMB235,728,241 and RMB219,964,434 and a guarantee liability amounted to RMB226,086,556 and RMB185,519,305. The guarantee liability will be amortized over the expected guarantee period in the subsequent reporting periods. Other income from Jiangxi Jinko Engineering for the guarantee fee amortized during the six months ended June 30, 2017 amounted to RMB24,803,444.

For the six months ended June 30, 2016 and 2017, revenues from sales of products to subsidiaries of Gansu Heihe amounted to RMB102,960,000 and nil, respectively.

After the disposition date of downstream solar project business during the six months ended June 30, 2017, sales of solar module products to subsidiaries of Jiangxi Jinko Engineering amounted to RMB39,279,170.

On January 1, 2008, Desun and Jiangxi Jinko entered into an operating lease agreement pursuant to which Desun leased its buildings and land use rights to Jiangxi Jinko for a ten-year period from January 1, 2008 to December 31, 2017. Desun charged Jiangxi Jinko RMB550,152 in rent for each six months ended June 30, 2016 and 2017 respectively.

In connection with the issuance of preferred shares by JinkoSolar Power in July 2014, China Development Bank, through its subsidiary, holds 21% equity interests of JinkoSolar Power on an as-if-converted basis. The above borrowings represent borrowings from subsidiaries of China Development Bank. After the disposition of the Group’s downstream solar projects business, China Development Bank is no longer of the Group’s related party.

For the six months ended June 30, 2016, borrowings from subsidiaries of China Development Bank amounted to RMB 90,000,000. Repayment of borrowings to subsidiaries of China Development Bank amounted to RMB 45,500,000. Interest charges in connection with the borrowings from China Development Bank amounted to RMB59,996,402.

As of June 30, 2017, the Company has been into a RMB90,000,000 loan agreement with a domestic bank which was collateralized on Desun's building and land use right amounted to RMB 24,753,581 and the Group’s certain building and equipment. .