The 2025 Lunar New Year box office in China shattered three major records:
- Total box office revenue reached RMB 9.51 billion (USD 1.3 billion), setting a new holiday record.
- Cinema admissions hit 187 million, the highest in history.
- The animated film Ne Zha 2 became China’s new all-time box office champion, surpassing The Battle at Lake Changjin with RMB 5.77 billion (USD 807.8 million).
It had been three and a half years since The Battle at Lake Changjin set its record in September 2021, a period marked by a slow recovery for China’s film industry. During this time, aside from its sequel, The Battle at Lake Changjin II, only one film, Full River Red, managed to break into China’s top ten highest-grossing films of all time. For years, cinemas had been waiting for another true box office juggernaut.
That moment arrived this Lunar New Year. Ne Zha 2 obliterated records in just eight days and five hours. Data from Beacon Pro shows that Ne Zha 2 dominated the holiday box office, accounting for over half of total revenue—an unprecedented concentration for a Lunar New Year release in the past decade.
Beyond the recordbreaking numbers, another trend stood out: the overwhelming presence of sequels. Alongside Ne Zha 2, which arrived five years after its predecessor, other major contenders included Detective Chinatown 1900, Boonie Bears: Future Reborn, Creation of the Gods II: Demon Force, and Operation Hadal—all franchise films. Even Legends of the Condor Heroes: The Gallants, while not a direct sequel, is rooted in a long-established IP. This shift underscores a key development: Chinese filmmakers are now reaping the rewards of years of IP cultivation, building franchises that can sustain long-term audience engagement.
Betting (safely) on the sequel boom
Hollywood has been riding the sequel wave for over a decade.
Take The Walt Disney Company, for example—its Avengers franchise spans four films, and Marvel’s cinematic universe continues to expand with an endless stream of superhero origin stories. Beyond that, Disney has revisited animated classics like Toy Story, Cars, Finding Nemo, and The Incredibles with sequels, while simultaneously turning The Little Mermaid, Mulan, Snow White, and The Lion King into live-action adaptations.
For major productions with heavy visual effects and high budgets, sequels are the safest bet in the film industry. But even this strategy isn’t foolproof—Disney has had its share of flops, and this year’s Lunar New Year box office saw its own misstep.
Creation of the Gods II was a prime example. Before its release, 1.66 million users on Taopiaopiao marked it as a “must-watch,” making it the second most anticipated Lunar New Year film in history. Of these, 30% had previously bought tickets for the first installment, signaling strong audience retention. But despite high expectations, the sequel’s box office performance nosedived after its debut on January 29. It has so far grossed only RMB 1.037 billion (USD 145.2 million), accounting for just 10% of the holiday box office—far behind Detective Chinatown 1900, which took about 24%.
Audiences criticized the film’s computer-generated effects on the character Yin Jiao, the awkward on-screen chemistry between Ji Fa and Deng Chanyu, and Jiang Ziya’s overly didactic monologues. At a promotional event in Taiyuan, an audience member even stood up to confront director Wuershan, questioning why the sequel was so polarizing despite fans’ continued support.
When a strong first installment sets the bar high, its sequel runs the risk of a backlash. In these cases, success depends not only on production quality but also on skilled public relations. The Creation of the Gods franchise already struggled with marketing for its first film, which had a slow box office start before rebounding on strong word-of-mouth. With its second installment, history repeated itself—the marketing team failed to manage negative reception, leading to a low Douban score of 6.1 and a flood of critical posts on social media.
By contrast, Detective Chinatown 1900 took a different approach. Since Chen Sicheng launched the Detective Chinatown cinematic universe, the franchise has been criticized for being self-indulgent, formulaic, and packed with forced humor. But that very quality has worked in its favor—viewers don’t set their expectations too high, and when looking for lighthearted entertainment during the holiday season, Detective Chinatown consistently delivers.
Beacon Pro data shows that Detective Chinatown 1900 maintained strong momentum, grossing over RMB 300 million (USD 42 million) per day for four consecutive days. Audience feedback was more positive than for previous installments, and the film attracted the highest percentage of young moviegoers—1.4 times more than Ne Zha 2. Among all Lunar New Year releases, it also had the strongest social appeal, drawing the highest share of double and group viewership.
Audience preferences move first, financial figures follow
When Creation of the Gods I: Kingdom of Storms was released in 2023, 36Kr noted that the film—ten years in the making—felt out of step with the cinematic landscape of its time. The era of big-budget fantasy blockbusters had seemingly faded, replaced by a preference for reality-based storytelling.
A decade ago, Chinese audiences flocked to fantasy films like Painted Skin, Monster Hunt, Detective Dee, and the Journey to the West series. Over time, their tastes shifted toward war epics and emotional dramas, with films like The Battle at Lake Changjin, Wolf Warrior, Hi, Mom, and The Wandering Earth dominating the box office.
But once again, the tides are turning. The mixed fortunes of the 2025 Lunar New Year box office highlight how quickly audience preferences evolve. The success—and heated discussions—surrounding Ne Zha 2 and Creation of the Gods II, both positive and negative, suggest a renewed enthusiasm for fantasy films. Meanwhile, Operation Hadal, an action film rooted in nationalism, failed to replicate the success of Operation Red Sea, both in ticket sales and online discussions.
Bona Film Group, the studio behind Operation Hadal, has long specialized in this genre. From Operation Mekong and Operation Red Sea to The Captain, The Battle at Lake Changjin, and Hidden Blade, the company has reaped significant rewards from patriotic action films. But audience preferences are shifting faster than production teams can adapt.
Enlight Media, a studio known for fantasy and comedy, placed a high-stakes bet on Ne Zha 2—and it wasn’t just the work of the production team, but also a matter of timing and luck in capturing the cultural zeitgeist.
A February 5 financial report from Enlight Media estimates that Ne Zha 2 would contribute between RMB 950 million (USD 133 million) and RMB 1.01 billion (USD 141.4 million) in revenue for the company, based on its first seven days of release. Given this trajectory, final earnings are expected to climb even higher.
Meanwhile, Creation of the Gods faces an uncertain future. Director Wuershan previously revealed that the trilogy had a production budget of RMB 2.4 billion (USD 336 million), with an additional RMB 600 million (USD 84 million) spent on marketing, bringing the total investment to RMB 3 billion (USD 420 million).
This means each installment must gross at least RMB 3 billion (USD 420 million) to break even. The first film fell short, earning RMB 2.6 billion (USD 364 million). Now, with the sequel struggling to reach half of that, the fate of the third installment hangs in the balance.
The appetite for fantasy films may have returned—but Creation of the Gods wasn’t ready for it.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Wang Yuchan for 36Kr.