AI FUSION CAPITAL GROUP CORP.

Business Details

This segment comprises three businesses: the "Fund Business," which invests in and supports the growth of venture companies and forms, manages, and operates investment limited partnerships; the "PIPEs Business," which underwrites private placements by listed companies; and the "Investment Banking Business," which provides corporate finance services. Its strength lies in sourcing and executing investment deals by leveraging a network of regional financial institutions and municipalities, including proprietary investments in companies pursuing AI-driven business model transformation. The Crypto Asset Investment Business is also operated in parallel.

Recent Overview

Sharp deterioration in profit and loss year on year due to no new fund formation and declines in the share prices of portfolio companies

Revenue for full-year FY2026 (ending March 2026) was ¥500 million (down 58.5% year on year), and operating loss was ¥422 million (versus operating income of ¥502 million in the prior period). The main causes were the absence of new investment limited partnership formation and declines in the share prices of listed portfolio companies. The company made additional Bitcoin purchases totaling ¥399 million in April, October, and November 2025, but as of the end of March 2026 a valuation loss of ¥76 million had arisen.

Key Products

Growth Drivers

• Establishing a new revenue source by promoting the formation of an AI fund specialized in companies providing AI solutions
• Enhancing sources of investment deal information by leveraging networks of regional financial institutions and municipalities
• Expanding the revenue base through the PIPEs Business's transition to GP (fund operator) status (Step 2)
• Forming alliances and group structures through consolidation and capital/business alliances in the proprietary investment business (e.g., Tameny Inc.)
• Capturing corporate finance needs arising from consolidation in the Investment Banking Business

Risks

• Risk of valuation losses and revenue volatility from declines in the share prices of listed portfolio companies (materialized in full-year FY2026, ending March 2026)
• Risk of a sharp decline in revenue and profit if formation of new investment limited partnerships stalls
• High price volatility of crypto assets creates risk of sharp short-term swings in asset value (valuation loss of ¥76 million as of the end of FY2026, ending March 2026)
• Competition with domestic and overseas investment firms and operating companies for high-quality investment deals
• Risk of investment losses due to deteriorating performance or bankruptcy of portfolio companies
• Risk of a deteriorating investment environment due to fluctuations in financial markets (long-term interest rates, foreign exchange)
• Risk of breaching financial covenants on borrowings (such as the prohibition on pre-tax losses for two consecutive periods)