AEON Fantasy's board resolved on September 14, 2026 to dissolve and liquidate its Beijing-based China subsidiary, which the company calls AF China, and it expects to finish the liquidation within the fiscal year ending February 2028. The decision sits beside the company's record first-half results, and the effect on net profit for the current year is still under review.
Why the unit goes. AF China was set up in 2007 and runs amusement facilities across China; AEON Fantasy owns 99.54%. The company says Covid and tougher competition in Chinese amusement left the unit with large operating losses from fiscal 2021. Restructuring has narrowed the deficit, but management judged a sharp recovery unlikely and decided to dissolve the unit after reviewing the group's business portfolio. At August 31, AF China held assets of ¥1.40bn and liabilities of ¥20.69bn. The resolution names this one subsidiary.
What it may cost. AEON Fantasy plans to book extra liquidation costs, including employee compensation, as an extraordinary loss this fiscal year. It also expects a deferred tax asset on valuation losses and loan-loss allowances tied to past investments and loans to its Chinese subsidiary. A results presentation says the tax benefit is currently assumed to exceed the extraordinary loss. A currency translation adjustment will move into extraordinary loss when the liquidation completes; the amount depends on exchange rates until then.
Separately, a notice of charges shows the parent booked ¥1.33bn in loan-loss allowances against loans to affiliates, citing weaker results at AF China and others. That entry is eliminated on consolidation and has no effect on consolidated results. China impairments for unprofitable and closing stores were ¥282.4mn.
The results. For March to August 2026, sales rose 12.3% to ¥52.37bn, operating profit rose 14.5% to ¥4.16bn and profit attributable to owners of the parent rose 22.2% to ¥2.16bn. The company says each profit line is an interim record. The China segment still lost ¥313.8mn on sales of ¥1.09bn, narrower than its ¥653.6mn loss a year earlier. Full-year guidance is unchanged, including net profit of ¥3.0bn.