JX ENERGY (03395), Jixing Energy, and Liuyongtan enter into a loan capitalization agreement.

JX Energy (03395) announces that on October 31, 2025 (after trading hours), the company, Jixing Energy, and Liuyongtan have entered into a loan capitalization agreement. According to this agreement, the parties conditionally agree that (i) a shareholder loan of 3.82 million Canadian dollars will be settled in full; and (ii) 2.1 billion capitalization shares will be issued and distributed to Liuyongtan at a price of HK$0.30 per share to settle a debt of 7.4943 million Canadian dollars (equivalent to approximately HK$41,662,719.59). The capitalization shares represent approximately 25.73% of the company's issued share capital after the issuance and distribution of the capitalization shares. The issuance price of HK$0.30 per share represents a discount of approximately 1.64% compared to the closing price of HK$0.305 per share on the Stock Exchange of Hong Kong on October 31, 2025 (the date of the loan capitalization agreement). The company will apply to the Stock Exchange Listing Committee for approval to list and trade the capitalization shares on the Stock Exchange. The loan settlement plan allows the company to repay existing debts without using existing internal financial resources and avoids cash outflows. After 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 significant additional capital investment. Failure to obtain additional financing and/or raise funds through asset sales may result in delays or suspension of development of these promising properties. The loan settlement plan provides an opportunity to improve the company's financial situation and align with these goals.