JX ENERGY (03395) announced that on October 31, 2025 (after trading hours), the company, JX Energy, and Liu Yongtan entered into a loan capitalization agreement. Under the agreement, the parties conditionally agreed to: (i) fully settle the shareholder loan of CAD 3.8382 million; and (ii) issue 210 million capitalization shares to Liu Yongtan at an issue price of HKD 0.30 per share to settle the debt of CAD 7.4943 million (equivalent to approximately HKD 41,662,719.59). The capitalization shares represent about 25.73% of the company's enlarged issued share capital after the issuance (assuming no changes in the issued share capital between the announcement date and the completion date, except for the issuance of capitalization shares). The issue price of HKD 0.30 per capitalization share represents a discount of approximately 1.64% compared to the closing price of HKD 0.305 per share on the Hong Kong Stock Exchange on October 31, 2025 (the date of the loan capitalization agreement). The company will apply to the Listing Committee of the Hong Kong Stock Exchange for approval to list and trade the capitalization shares. The loan settlement arrangement allows the company to settle existing liabilities without utilizing internal financial resources, thereby avoiding cash outflows. Upon completion, the company's debt ratio will decrease, improving its financial position. As disclosed in the company's 2024 annual report, ongoing property exploration and development will require substantial additional capital investment. Failure to secure additional financing and/or raise funds through asset sales may delay or suspend the development of these promising properties. The loan settlement provides an opportunity to enhance the company's financial condition, aligning with the aforementioned objectives.