AEON Fantasy Co.,LTD. told the Tokyo Stock Exchange on September 14, 2026 that its board had resolved to dissolve and liquidate AF China, the company's own shorthand for its Beijing-based operator of children's amusement facilities founded in September 2007, in which the Japanese parent holds 99.54% of shares and all voting rights.
The stated reason is a business that never recovered. AF China ran large operating losses every year since 2021 amid the pandemic's impact and intensified competition in China's amusement sector afterward. AEON Fantasy said structural reforms narrowed the operating loss but concluded a dramatic turnaround was unlikely given the unit's longer-term growth prospects in China, prompting a review of the wider group portfolio and the decision to exit.
The numbers show the deterioration. Revenue fell from 344.02 million yuan in the year to December 2023 to 246.44 million yuan in 2024 and 150.98 million yuan in 2025, while net assets swung further underwater each year, ending 2025 at negative 810.32 million yuan.
| Fiscal year (Dec) | Revenue | Operating profit/loss | Net income/loss | Net assets |
|---|---|---|---|---|
| 2023 | 344.02 | -163.86 | -171.12 | -490.25 |
| 2024 | 246.44 | -259.24 | -289.45 | -722.46 |
| 2025 | 150.98 | -124.68 | -129.18 | -810.32 |
Before winding the unit down, AEON Fantasy is recapitalizing it. The same day, the company said it would convert 819 million yuan (about ¥19.4bn) of loan claims into equity through a debt-equity swap and inject a further ¥4.3bn of new capital, both planned for November 2026. That lifts AEON Fantasy's stake to 99.86% and the subsidiary's capital to a planned ¥33.7bn. The company said the recapitalization itself has no effect on its consolidated results for the year ending February 2027.
The liquidation's accounting will unfold over two years. Closure costs and employee compensation will be booked as extraordinary losses in the year to February 2027, but deferred tax assets tied to past write-downs on the China investment and loans are expected to make the net profit effect positive for that year. The final hit lands later: AF China's foreign-currency translation adjustment converts to an extraordinary loss only when liquidation completes, expected sometime during the fiscal year ending February 2028, and its size will depend on the yen-yuan exchange rate at that point. AEON Fantasy said the specific loss figures are still under review and that these are subsidiary-level results, not the parent's consolidated performance.