Core Viewpoint - The announcement details a related party transaction involving the exchange of debt for equity between Sino-Science Netherlands Petroleum B.V. and Sino-Science Netherlands Energy Group B.V., which will result in the company indirectly holding 17.859% of Sozak Oil & Gas LLP's shares [1][2][4]. Summary by Sections Transaction Overview - As of July 15, 2025, Sozak Oil & Gas LLP has operational transactions amounting to $15,229,623.88 with Sino-Science Netherlands Energy Group B.V. [1] - Sino-Science Netherlands Petroleum B.V. plans to exchange its 0.85% stake in Sozak for the aforementioned debt, leading to an indirect ownership of 17.859% in Sozak by the company [2][3]. Purpose and Reason for the Transaction - The transaction aims to reduce the company's receivables recovery risk, enhance asset liquidity, and align with the national "Belt and Road" initiative while optimizing business layout and asset structure [4][5]. Approval Process - The board of directors approved the asset exchange on July 17, 2025, and it will be submitted for shareholder approval, with related parties abstaining from voting [5][12]. Related Party Information - The major shareholder, Guangxi Zhenghe Industrial Group Co., Ltd., holds 12.25% of the company, with HUILING (Xu Ling) as the actual controller [5][6]. Financial Information of Related Parties - Sino-Science Netherlands Petroleum B.V. reported total assets of approximately $113.99 million and a net asset deficit of about $110.88 million [7]. - Sozak Oil & Gas LLP has total assets of approximately 988.67 million RMB and a net asset deficit of about 72.95 million RMB [9]. Valuation of the Transaction - The valuation of the 0.85% stake in Sozak is confirmed at $15,229,623.88, based on the company's financial metrics and market evaluations [10][11].