Shares of H World Group (HTHT) surged 5.55% in pre-market trading on Wednesday following the release of the company's strong second quarter 2025 financial results and dividend announcement.

The Chinese hotel operator reported revenue of RMB 6.4 billion ($897 million) for Q2, representing a 4.5% year-over-year increase and exceeding analyst expectations. Net income attributable to H World Group skyrocketed 44.7% year-over-year to RMB 1.5 billion ($215 million).

Notably, H World's high-margin manachised and franchised business saw impressive growth, with revenue in this segment jumping 22.8% compared to the same period last year. This strong performance in the asset-light portion of the business particularly pleased investors, as it signals improved profitability and scalability.

Adding to the positive sentiment, the company declared a cash dividend of $0.081 per ordinary share for the first half of 2025. This move demonstrates confidence in H World's financial position and commitment to returning value to shareholders.

Looking ahead, H World provided an optimistic outlook for the third quarter, projecting revenue growth of 2-6% year-over-year. The company expects its manachised and franchised revenue to continue its strong performance, with projected growth of 20-24% in Q3.

The combination of better-than-expected Q2 results, significant growth in the high-margin business segment, dividend announcement, and positive forward guidance appears to be driving the pre-market surge in H World's stock price as investors react positively to the company's strong performance and future prospects.