Ne Zha 2 Breaks Box Office Records in Changing Chinese Film Landscape
Ne Zha 2’s box office success reflects a shift towards IP ecosystems in the Chinese film industry amid evolving consumer trends.
Quiver AI Summary
During the 2024 Chinese Spring Festival, the animated film “Ne Zha 2” led the box office, achieving RMB 4.839 billion during the holiday and exceeding RMB 12 billion in total revenue, placing it among the top 9 highest-grossing films globally. This achievement has sparked a broader consumer trend within the ACG “Goods” community, resulting in increased demand for merchandise and user-generated content. Although the overall box office trend in the Chinese film market has been declining in recent years, the 2025 Spring Festival season witnessed an 18.6% rise in total box office revenue, significantly attributed to “Ne Zha 2,” which contributed over 50% to this total. The film exemplifies a shift towards ecosystem-based competition within the industry, where film success closely connects with developing an IP ecosystem, enhancing technology, and fostering consumer engagement. Ne Zha 2’s marketing strategy—which includes derivative products and user engagement initiatives—underscores the industry’s evolution towards nurturing emotional connections with audiences. This shift emphasizes that sustainable success now depends on cultivating IPs, rather than merely relying on box office figures.
Potential Positives
- Ne Zha 2 set a new record for Chinese cinema with total box office revenue exceeding RMB 12 billion, ranking among the top 9 highest-grossing films worldwide.
- The 2025 Spring Festival movie season generated a total box office revenue of RMB 9.51 billion, which represents an 18.6% increase compared to the previous year, indicating a recovery trend in the market.
- Ne Zha 2’s success has driven notable engagement in the derivative products market, reflecting a robust ecosystem surrounding the film and the company’s effective IP collaboration strategy.
- The increase in active daily users on ticketing apps during the festival highlights growing consumer interest and engagement with films, which bodes well for future releases and potential revenue streams.
Potential Negatives
- The overall decline in China’s box office revenue in 2024, which saw a 22% drop, suggests challenges for the industry that might affect future profitability and sustainability.
- The heavy reliance on Ne Zha 2 to generate over 50% of total revenue for the Spring Festival movie season raises concerns about the company’s dependence on a single IP for financial success.
- Criticism of spin-off films like Creation of the Gods II underscores the risks of IP over-reliance, as not all derivative products may yield positive returns, impacting the company’s reputation.
FAQ
What is the box office performance of Ne Zha 2?
Ne Zha 2 grossed RMB 4.839 billion during the 2024 Spring Festival, with a total exceeding RMB 12 billion as of February 17.
How did Ne Zha 2 impact the Chinese film market?
Ne Zha 2 significantly boosted market revenue, contributing over 50% of the RMB 9.51 billion generated during the 2025 Spring Festival.
What role do derivative products play in Ne Zha 2’s success?
Derivative products, such as toys and collectible cards, enhance Ne Zha 2’s brand, promoting emotional engagement and community participation.
How has consumer behavior changed regarding film-related products?
Consumers increasingly seek emotional connections through derivative products, moving from mere functionality to immersive experiences within the “Goods” economy.
What is the significance of IP ecosystems in the film industry?
Building an IP ecosystem, as demonstrated by Ne Zha 2, is crucial for sustainable revenue, shifting the focus from box office earnings to emotional engagement.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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Full Release
SHENZHEN, China, March 07, 2025 (GLOBE NEWSWIRE) — During the 2024 Chinese Spring Festival movie season, the animated film Ne Zha 2 dominated the box office. According to publicly available reports, the film grossed RMB 4.839 billion during the holiday. As of February 17, its total box office revenue had surpassed RMB 12 billion, ranking among the top 9 highest-grossing films globally and setting a new record for Chinese cinema. This box office achievement coincides with a consumption surge driven by the ACG “Goods” community, resulting in increased demand for spin-off merchandise, viral user-generated content, and character-related discussions trending on social media.
I. From “Watching Films” to “Nurturing IPs”: The Movie Industry Enters an Era of Ecosystem-based Competition
Recent data from the China Film Administration reveals fluctuations in the total box office revenue in the Chinese film market over the past five years, diverging from the steady upward trend observed a decade ago. While the most challenging three years appear to be behind, the box office total for 2023 did not return to levels seen between 2017 and 2019. The 2024 box office revenue experienced a 22% decline, indicating that the domestic film consumption market is still in a prolonged “winter period.”
Total Box Office Revenue in China (Unit: RMB Hundred Million)
| Year |
Spring Festival Movie Season Drives Record Box Office Growth in 2025
| Box Office
(RMB 100 million) |
|||
| 2014 | 296.4 | ||
| 2015 | 440.7 | ||
| 2016 | 457.1 | ||
| 2017 | 559.0 | ||
| 2018 | 609.0 | ||
| 2019 | 642.7 | ||
| 2020 | 204.2 | ||
| 2021 | 472.6 | ||
| 2022 | 300.7 | ||
| 2023 | 549.2 | ||
| 2024 | 425.0 | ||
|
Data Source: China Film Administration |
|||
This year’s Spring Festival movie season delivered a significant boost to the box office. Data from BEACON indicates that the 2025 Spring Festival season generated total box office revenue of RMB 9.51 billion, marking an 18.6% increase compared to 2024 and setting a new record. Notably, Ne Zha 2 accounted for over 50% of the total revenue, positioning it as the top performer of the season.
Monitoring data from the MoonFox iApp reflects a notable rise in active users on major movie ticketing platforms. This year’s Spring Festival season saw the Average Daily Active Users (DAU) on the Taopiaopiao app reach 1.968 million, which indicates a 15.2% increase from 2024. Unlike the previous year, where user numbers dropped significantly after the Spring Festival, this year the decline on Taopiaopiao has been limited to just 19% in the week following the festivities. This sustained interest highlights a positive trend for the movie industry and market engagement.
China’s Spring Festival: Box Office Trends and Ticketing App DAUs
During the week following the Spring Festival, there was a notable decline in daily active users (DAUs) for various ticketing applications. While many services experienced a downturn, Maoyan reported a smaller decrease of just 11% amidst this trend.
Total Box Office Revenue for the Spring Festival Movie Season in China
Box Office Revenue (Unit: RMB Hundred Million)
| Year | Total Box Office | Average Daily Box Office | ||
| 2018 | 57.7 | 8.2 | ||
| 2019 | 59 | 8.4 | ||
| 2021 | 78.4 | 11.2 | ||
| 2022 | 60.4 | 8.6 | ||
| 2023 | 67.6 | 9.7 | ||
| 2024 | 80.2 | 10 | ||
| 2025 | 95.1 | 11.9 | ||
| Data Source: BEACON Pro, Ping An Securities | ||||
DAU Performance of Ticketing Apps
Below is the daily active user performance for ticketing applications during the Spring Festival movie season:
| Taopiaopiao |
Spring Festival Movie Seasons Highlight IP Strategy’s Impact on Box Office
|
Maoyan |
||
|
2024 Spring Festival Movie Season (February 10, 2024 – February 17, 2024) |
1.708 million |
1.201 million |
|
The Week after 2024 Spring Festival Movie Season (February 18, 2024 – February 24, 2024) |
794,000 |
623,000 |
|
2025 Spring Festival Movie Season (January 28, 2025 – February 4, 2025) |
1.968 million |
1.455 million |
|
The Week after 2025 Spring Festival Movie Season (February 5, 2025 – February 11, 2025) |
1.594 million |
1.296 million |
|
Data Source: MoonFox iApp, Data Cycle: 2024 – 2025 |
||
The competition among films during the Spring Festival movie season this year is notably driven by intellectual property (IP). Of the six films released, five are either sequels or adaptations, showcasing popular franchises such as Ne Zha 2, Creation of the Gods II: Demon Force, Detective Chinatown 1900, Boonie Bears: Future Reborn, and Legends of the Condor Heroes: The Gallants. This trend illustrates a significant change in China’s film industry: the focus is shifting from solely box office revenue to creating a robust “IP ecosystem,” which now serves as a competitive advantage for key players.
However, not all IPs perform equally at the box office. The success of Ne Zha 2 is built on a solid RMB 5 billion foundation from its predecessor, enhanced by advancements in “technology and culture.” This approach has created a strong ecosystem barrier, marked by impressive special effects, high production quality, and various spin-off products like figurines, artbooks, and collectible cards. The film’s marketing team has also effectively engaged audiences through user-generated campaigns, encouraging a comprehensive experience that links film viewing with consumption and social media interactions. In contrast, Creation of the Gods II, despite being a sequel, struggled with criticism regarding its special effects and storyline, resulting in diminished audience interest and engagement.
Derivative Product Partnerships for
Ne Zha 2
|
Company Name |
Partnership Type |
Product |
| Golden Laser | Gaotou Golden Fund invested in LDCX | Figurine |
| POP Mart | Direct Sales Partnership in Derivative Products | Figurine |
| CITIC Press | Details not provided | Details not provided |
Expanding IP Ecosystems: How Derivative Products Are Reshaping Revenue Models
| Direct Sales Partnership in Derivative Products | Artbook | |
| JASON Entertainment Group | Direct Sales Partnership in Derivative Products | Collectible Card |
This value differentiation illustrates that creating an IP ecosystem goes beyond producing single content. It necessitates the concurrent advancement of technology, the development of derivative products, and user engagement across various platforms. For instance, Enlight Media’s derivative product matrix for Ne Zha and Wanda Film’s ambition to build the “Detective Chinatown Universe” through its movie series highlight this strategy. Both efforts seek to transform casual moviegoers into lifelong consumers of intellectual property, creating a sustainable revenue stream.
II. Capitalizing on “Goods” Community Trends: Derivative Products Expand IP Market Presence
The success of Ne Zha 2 demonstrates an effective model where films serve as an entry point, while ecosystems extend the experience. This marks China’s film industry’s transition into the era of nurturing intellectual properties. In this context, derivative products generate substantial commercial value, shifting the film industry’s profit model. Under the influence of the “Goods Economy,” the derivative product market in China has emerged from a supplementary role to becoming a central focus.
Traditionally, derivative products were seen as mere add-ons to box office earnings, appealing to a limited fanbase. However, their function has now evolved to amplify the overall IP ecosystem. As a prominent player in the “Goods” community, Pop Mart has introduced the “Born Bonded” blind box series in collaboration with Ne Zha 2 on January 30. Since its launch, inspired by the film’s release, increasing word-of-mouth, and wider social impact, Pop Mart has experienced a spike in active users on its platform. Data from MoonFox iApp indicates that the daily active users (DAU) of Pop Mart’s “Blind Box Machine” peaked at 770,000 on February 7, reflecting a more than fivefold year-over-year increase. Consequently, the shipping schedule for this collaborative blind box series has been postponed to June 30.
Pop Mart Applet DAU and Growth Trends
| Date | Pop Mart Applet DAU (Unit: 10,000) | Pop Mart Applet DAU YoY Increase | Pop Mart Blind Box Machine Applet DAU (Unit: 10,000) | Pop Mart Blind Box Machine Applet DAU YoY Increase |
| 2025-01-30 | 23.8 | 299.3% | 16.2 | 135.6% |
| 2025-01-31 | 24.9 | 315.5% | 21.5 | 203.5% |
| 2025-02-01 | 29.4 | 347.7% | 35.1 |
# Weekly Stock Performance and Growth Metrics Analyzed
| Date | Price | Growth % | Volume | Market Cap % Growth |
|---|---|---|---|---|
| 2025-02-02 | 31.7 | 291.1% | 50.6 | 534.0% |
| 2025-02-03 | 29.4 | 236.9% | 42.9 | 478.0% |
| 2025-02-04 | 33.3 | 289.9% | 56.2 | 630.6% |
| 2025-02-05 | 28.1 | 199.5% | 46.3 | 528.3% |
| 2025-02-06 | 49.2 | 505.5% | 73.5 | 784.0% |
| 2025-02-07 | 46.0 | 214.8% | 77.0 | 568.6% |
| 2025-02-08 | 36.6 | 213.3% | 66.5 | 355.9% |
| 2025-02-09 | N/A | N/A | N/A | N/A |
Shifting Consumer Demands: How Emotional Engagement Drives Market Success
| 41.6 | 372.0% | 76.5 | 485.8% | |
| 2025-02-10 | 38.0 | 154.0% | 69.7 | 252.6% |
| Data Source: MoonFox iApp, Data Cycle: January 30, 2025 – February 10, 2025 | ||||
The Goods Economy highlights a notable movement in consumer preferences, shifting from mere functionality to emotional connections. Purchases, such as a Ne Zha figurine, represent more than just a product; they symbolize a belief in self-determination, a commitment to community, and an emotional refuge amid life’s pressures.
Pop Mart’s tremendous success with Ne Zha 2 underscores the company’s dedication to leveraging intellectual property (IP) collaborations. They are creating a rich landscape of emotional buying experiences through extensive IP operations.
Conclusion: Transitioning from “Watching Films” to “Nurturing IPs”
Insights from industry analysts suggest that in a matured film market, revenues from related merchandise ought to surpass box office earnings. In the U.S. and Japan, for example, the revenue ratio of merchandise to box office income can be as high as 3:7. Although the market for Ne Zha 2’s merchandise in China has not yet reached box office levels, it presents a significant opportunity for collaboration between the film and consumer goods sectors. The excitement generated by Ne Zha 2 reinforces an essential understanding: amidst a crowded media landscape, businesses can only achieve substantial growth by fostering sustainable emotional connections through their IP.
The success of Ne Zha 2, along with its merchandise, marks a pivotal moment for domestic IP and indicates a shift in China’s cultural industry. This transition involves moving from a focus on user volume and competition to cultivating authentic emotional engagement.
About MoonFox Data
MoonFox Data, a sub-brand of Aurora Mobile, is a recognized leader in data analysis and insights. With a stable and secure mobile big data foundation, alongside advanced analytics and AI technologies, MoonFox Data offers various services, including iAPP, iBrand, iMarketing, and professional research, empowering companies to understand market trends and make informed business decisions.
About Aurora Mobile
Aurora Mobile (NASDAQ: JG) was founded in 2011 and is a significant player in customer engagement and marketing technology in China. Their services encompass notification solutions, marketing growth strategies, development tools, and data products.
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Contact: [email protected] | Website: http://www.moonfox.cn/en
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