BEIJING (Reuters)

Chinese animated film ‘Ne Zha 2‘ became the country’s highest-grossing film last Thursday, taking more than ¥5.8 billion (US$796.32 million), after drawing large audiences during the recent Lunar New Year holiday.

The film, about a mythical boy with magical powers and incredible martial arts skills, overtook the previous record holder ‘The Battle at Lake Changjin‘, a 2021 epic about the Korean War, according to online ticketing platform Maoyan.

‘Ne Zha 2‘ is a sequel to the 2019 hit ‘Ne Zha‘, which ranks fifth on the list of China’s highest-grossing films. The movies are loosely based on the classic 16th-century Chinese novel Investiture of the Gods.

China’s film industry had a bumper Lunar New Year holiday, achieving historic highs during the eight-day festival as total box office and cinema visits hit records.

The encouraging performance follows a dismal 2024 when the total box office dropped 22.6 per cent from the previous year as audiences stayed home amid the sluggish economy.

Despite this year’s strong start, analysts say the outlook remains uncertain. Box office statistics are significantly influenced by the release of blockbusters, Goldman Sachs said in a report on Wednesday. Distributors are often reluctant to release big films during a sluggish economy or out of holiday season.

‘Ne Zha 2‘ has been on release for nine days and its total box office is expected to rise further.

On China’s all-time top 10 films, there is only one Hollywood film. ‘Avengers: Endgame‘ secured ninth position with a box office of ¥4.25 billion in 2019.