Edward kills Jim after Edward sees him hurt Kim. He and Kim know that if he goes back to Suburbia they'll kill him, so they kiss, she tells him she loves him, and she leaves him in his mansion. They never see each other again. It turns out the old woman narrating the story is Kim, telling the story of Edward to her granddaughter, and that he is the reason that snow falls from the sky from then on, because he's making ice sculptures.
Plot hole: At the end of the film, we see Edward carving ice sculptures in his mansion. How did he get the ice up there? First of all, it takes place in a warm climate and I didn't see a freezer up there in the castle. He couldn't have gotten ice from town because firstly he had scissors for hands and couldn't have gripped the ice. And, even if by some miracle he could, he wouldn't be able to buy any from town because everyone in town but Kim was convinced that Edward was dead, she told everyone that they killed each other. And Kim didn't bring it to him because she told her granddaughter in the end that she never saw him again after that night. So where did he get that ice?
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