Revenue and net profit both decline! How Zhao Riquan and Li Nan can reverse the downward trend in China's international trade performance | Financial Report Review

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Against the backdrop of overall industry pressure, whether China World Trade Center’s new management can reverse the downward trend in performance will be the market’s focus.

Yu Shuangqing, China Real Estate Reporter Li Ye | Beijing Report

Owning core assets in Beijing CBD (Central Business District), China World Trade Center has delivered an annual report below market expectations.

On April 1st, China International Trade Center Co., Ltd. (hereinafter referred to as “China World Trade Center”) released its 2025 annual report, showing the company achieved operating revenue of 3.77 billion yuan for the year, down 3.63% year-on-year; net profit attributable to shareholders of the listed company was 1.2B yuan, down 4.76% year-on-year.

Behind the performance decline are the comprehensive pressures on its two core businesses: office buildings and hotels, with office rent averaging 609 yuan per square meter per month, and hotel gross profit margin dropping to 5.17%.

Regarding the decline in performance, China World Trade Center analyzed in its annual report that in 2025, the new demand in Beijing’s office market remained weak, with rental levels under continued pressure; meanwhile, the hotel industry faced market segmentation and insufficient demand, with fierce competition among high-end hotels.

In the context of overall industry pressure, the company’s asset side contracted, with total assets at the end of the year amounting to 11.45B yuan, a decrease of 7.07% from the beginning of the period.

Under the dual pressures of weak office demand and intensified competition in high-end hotels, China World Trade Center remains cautious about its 2026 performance outlook. According to disclosures, in 2026, the company expects to achieve operating revenue of 3.61 billion yuan, costs and expenses of 1.81 billion yuan, and total profit of 1.45 billion yuan, indicating that the company’s short-term market recovery remains uncertain.

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Core Business Under Pressure

China World Trade Center was listed on the Shanghai Stock Exchange in 1999. Its main businesses include leasing and management of investment properties such as office buildings, shopping malls, and apartments, as well as hotel operations. Its core asset is the Guomao Center complex in Beijing CBD, with a total construction area of over 1.1 million square meters, integrating Grade-A office buildings, high-end shopping malls, luxury hotels, serviced apartments, and conference facilities.

In 2025, revenue from leasing and management of core properties was 3.28B yuan, down 3.27% year-on-year, with gross profit margin decreasing by 0.39 percentage points, mainly due to rising vacancy rates in Beijing CBD office buildings, rent pressure, and sluggish consumer recovery.

Looking at the revenue composition, office buildings and shopping malls are the main sources, accounting for 37.55% and 33.65% of total revenue respectively in 2025, but both saw declines.

Office leasing is the main factor behind China World Trade Center’s performance decline. During the reporting period, annual revenue was 1.42B yuan, a decrease of 95.54 million yuan from 2024, with average rent dropping from 639 yuan per square meter per month in 2024 to 609 yuan, and average occupancy rate slightly decreasing from 93.1% to 91.8%.

This performance aligns with the overall trend in Beijing’s office market. JLL data shows that in 2025, the city’s Grade-A office vacancy rate reached 15.2%, with nearly 1.5 million square meters of vacant space. Despite new supply reaching its lowest level in recent years, corporate leasing and expansion demand remained weak, exerting significant downward pressure on rents.

The retail commercial property market is also facing adjustments. International premium brands have stabilized temporarily but overall declined, with cautious store expansion and a focus on optimizing layout and controlling costs. In 2025, shopping mall revenue was 1.27B yuan, down 17.75 million yuan year-on-year, with average rent decreasing from 1,309 yuan per square meter per month to 1,300 yuan, and occupancy rate dropping by 1 percentage point.

The hotel business faces even greater pressure. Amid intensified competition among high-end hotels, 2025 hotel operating income was 494 million yuan, down 31.42 million yuan year-on-year, with gross profit margin decreasing by 2.1 percentage points. China World Trade Center stated that Beijing’s high-end hotel industry generally faces “double decline” in occupancy and average room rates, with reduced government and business activities, and corporate travel budget cuts directly impacting room, banquet, and catering revenues.

In response to industry downturns, China World Trade Center plans to seek breakthroughs through digital transformation and cost control, including promoting smart malls and smart office buildings, optimizing online-offline integration experiences, and strengthening cost management and personnel restructuring to improve operational efficiency and customer loyalty.

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Management Team Iteration

Against the backdrop of continuous performance decline, a systematic personnel adjustment was rapidly carried out before the release of the financial report.

Between November 2025 and January 2026, China World Trade Center completed leadership changes including the chairman, vice chairman, and vice general manager.

On November 7, 2025, China World Trade Center announced that Huang Guoxiang resigned from the positions of chairman, executive director, and remuneration committee member due to work reasons.

After Huang Guoxiang’s departure, the board elected Zhao Ruoquan as the chairman, executive director, and remuneration committee member of the ninth board of directors.

Born in 1970, Zhao Ruoquan joined Shangri-La Group in 2025. Previously, he served as CFO at Tian Yue Advanced and Huazhu Hotels Group. His background shows extensive experience in financial control, overseas business expansion, and capital operations, which may bring new ideas for China World Trade Center’s capital management and business development.

Notably, before Zhao Ruoquan took over as chairman, Li Nan, former senior vice president and head of commercial real estate at Longfor Group, officially joined China World Trade Center as executive director and general manager.

Li Nan has many years of experience in commercial real estate, leading the rapid development of Longfor’s Tianjie series projects and specializing in detailed operational management of commercial projects.

On January 15, China World Trade Center announced that Zhong Rongming would no longer serve as vice general manager; concurrently, the board approved the appointment of Cai Ningling as vice general manager to strengthen the management team.

Cai Ningling, born in 1974, holds a master’s degree in real estate management from the University of Hong Kong. She has worked for large enterprises in Hong Kong and the UK, including Kerry Properties and Wharf China Properties, with deep expertise in commercial real estate leasing, operations, and asset management.

The next day, China World Trade Center’s vice chairman, executive director, and remuneration committee member Wu Xiangren retired, and Yu Yuantang was elected as his successor.

According to publicly available resumes, Yu Yuantang is 59 years old, graduated from the University of International Business and Economics with a major in finance, holds a Ph.D. in economics, and has long been engaged in trade and economic fields. He has held positions in the Ministry of Commerce, the Department of Foreign Economic and Trade, and the European Department, accumulating rich experience and broad industry resources.

Following these adjustments, China World Trade Center has formed a management team covering capital operations, detailed management, asset management, and government affairs. In the context of overall industry pressure, whether China World Trade Center’s new leadership can reverse the downward trend remains the market’s focus.

Duty Editor: Li Hongmei

Chief Editor: Ma Lin, Wen Hongmei