Distribute 107 yuan per hand! China International Trade's generous dividend, with expected 2026 revenue and total profit still declining year-over-year.

Everyday Business News reporter | Wen Duo    Everyday Business News editor | Wei Weny i

China World (SH600007, share price 21.10 yuan, market cap 21.254 billion yuan), which holds prime property in the core area of Beijing CBD (Central Business District), has turned in an annual performance report that is somewhat under pressure.

After market close on April 1, China World disclosed its 2025 annual report. For the full year, the company recorded operating revenue of 3.77 billion yuan, down 3.63% year over year; net profit attributable to shareholders was 1.202 billion yuan, down 4.76% year over year.

During the reporting period, both the company’s core office and hotel operations faced challenges. Specifically, average monthly office rent fell from 639 yuan per square meter per month to 609 yuan per square meter per month, and the gross profit margin of its hotel operating business also declined from 7.27% to 5.17%. In its annual report, the company said bluntly that the Beijing office market’s incremental demand was weak, while competition in the high-end hotel sector continued to intensify.

Against the backdrop of declining performance and a market environment full of challenges, China World has stuck to a “high cash dividend” strategy. The company’s board of directors proposed paying all shareholders a cash dividend of 10.7 yuan for every 10 shares (inclusive of tax), with a total cash dividend of approximately 1.078 billion yuan and a payout ratio of 89.64% of net profit attributable to shareholders.

At the same time, the company made a relatively cautious forecast for 2026 performance, expecting both revenue and total profit to decline.

China World’s core businesses mainly include leasing and management of investment properties such as office buildings, shopping malls, and apartments, as well as hotel operations. The company’s China World Center is a landmark commercial complex located in Beijing’s Central Business District (CBD). However, in 2025, each of these businesses felt the chill of the market.

Financial data shows that in 2025, China World achieved operating revenue of 3.77 billion yuan, down 3.63% from 3.912 billion yuan in 2024; net profit attributable to shareholders was 1.202 billion yuan, down 4.76% from 1.262 billion yuan last year.

Image source: China World 2025 Annual Report

Behind the decline in performance is the operating pressure on the company’s core business segments. As the fundamental driver of China World’s revenue, the property leasing and management business generated full-year revenue of 3.276 billion yuan, down 3.27% year over year.

Among them, the office business is the main drag. During the reporting period, China World’s average office rent fell from 639 yuan per square meter per month in the previous year to 609 yuan per square meter per month; the average occupancy rate also dipped slightly from 93.1% to 91.8%. The company’s revenue composition table shows that office business revenue for the full year was 1.416 billion yuan, down about 95.5413 million yuan year over year.

Image source: China World 2025 Annual Report

Hotel operations also face challenges. In 2025, China World’s hotel operating revenue was 494 million yuan, down 5.98% year over year. What is even more noteworthy is the decline in profitability: the business’s gross profit margin fell by 2.1 percentage points from 7.27% in 2024 to 5.17%.

In its annual report, China World analyzed that in 2025, the incremental demand in Beijing’s office market remained weak and rent levels continued to face pressure; the hotel industry, meanwhile, faced challenges from market segmentation and insufficient demand, with competition in the high-end hotel segment continuing to intensify. The company also emphasized, however, that through flexible operating measures, its key performance indicators still performed better than the average levels in the market and in its regions.

Although performance declined, China World still decided to return shareholders with large-scale dividends. The company plans to pay all shareholders a cash dividend of 10.7 yuan for every 10 shares (inclusive of tax), for a total cash dividend of approximately 1.078 billion yuan. This dividend total accounts for nearly 90% of that year’s net profit attributable to shareholders, reaching 89.64%.

Image source: China World 2025 Annual Report

On the other side of the high dividend, is China World’s cautious outlook for the future market. In its business plan, the company forecast that in 2026 it expects operating revenue of 3.61 billion yuan and total profit of 1.45 billion yuan. Both key indicators are lower than the actual results achieved in 2025 (operating revenue of 3.77 billion yuan, total profit of 1.605 billion yuan).

In its “Industry Pattern and Trends” analysis, the company stated that it expects the office market as a whole to remain weak in 2026, with greater divestment/absorption pressure in regions such as the CBD; the commercial retail property market will see increased segmentation, with an overall downward trend; and the hotel market will face more intense competition and further segmentation.

It is worth noting that shortly before the annual report was released, China World went through a series of senior personnel changes. From November 2025 to January 2026, the company completed personnel adjustments for key positions such as chairman, vice chairman, and vice general manager in succession. How the new management team will lead China World in responding to market challenges is worth continued attention.

Disclaimer: The contents and data in this article are for reference only and do not constitute investment advice. Please verify before use. Any actions taken are at your own risk.

Cover image source: Everyday Business News media resources library

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