How Nezha 2 achieved legendary success amidst Chinese film industry's winter
Some loved it, others didn't: a comprehensive analysis of its cultural and industry implications
Nezha 2 has topped the global office for animated films
In our article last week, we highlighted the remarkable popularity of the movie Nezha 2. Since then, its box office success has continued to climb. The film has risen from top rankings during the Spring Festival to a place in Chinese film history and now into the global box office charts. It currently holds an impressive 8.5 rating on Douban (the Chinese equivalent of Rotten Tomatoes). Based on my personal observation, only about 10% of movies manage to score above 8.
As of February 18th, Nezha 2 has grossed over 12.319 billion yuan globally, surpassing Inside Out 2 to become the highest-grossing animated film worldwide and ranking 8th on the global box office list. With over 200 million viewers, the film's success is especially notable given China's population of 1.4 billion.
Internationally, Nezha 2 has also made waves. Its North American release on February 14th saw pre-sale ticket sales exceed the opening weekend records for Chinese-language films over the past 20 years.
The stock price of Enlight Media(300251.SZ), the production company of the film, experienced significant fluctuations between February 5 and February 14, 2025. During these eight trading days, the stock price surged by over 260%, with the company's market value exceeding 100 billion yuan at one point. However, on February 17, 2025, the stock price plummeted sharply after hitting the daily upper limit in the morning session, ending the day with a decline of 14.6% and a market value of 87 billion yuan. Overall, the stock price dropped nearly 20% over the two days from February 17 to February 18.
In today's article, I'll dive deeper into the legendary success of Nezha 2. I'll explore how this film managed to create miracles in China's struggling film industry, and why, despite its success, I still see potential issues and risks from my personal viewing experience. If you're interested in China's film industry or cultural shifts, this piece can offer some valuable insights.
[Spoiler Alert: The following content contains key plot details from the film. If you haven't watched it yet, proceed with caution!]
Does the success of Nezha 2 mark the end of the winter for China's film industry?
Since the pandemic began in 2020, China's film industry has been in a downturn. Over the past five years, it has failed to reach pre-pandemic levels, with a 23% year-on-year decline in 2024.
This is not due to the capacity of theaters, but rather the lack of film supply. The pandemic has slowed down film production, while the diversification of entertainment options (such as the rise of short videos and mini-dramas), and the concentration of blockbuster films have led to a significant reduction in the number of theatrical releases, with only a handful of high-quality films available. The box office numbers are directly related to the number of screens. China now has 85,000 screens, which can support any volume of box office revenue. However, we lack a sufficient number of good films to sustain stable box office performance throughout the year.
The box office success of Nezha can be simply attributed to a combination of favorable timing, location, and people. The Spring Festival is a major release period, and during this peak season, other films had noticeable shortcomings and received much poorer reviews. Nezha's subject matter and animated format made it suitable for family viewing. Data from Maoyan shows that the proportion of purchasing three or more tickets exceeded 30%.
Then, who is Nezha? Why could his story win this time?
Nezha is a classic mythological figure in traditional Chinese culture, originating from the Buddhist guardian deity "Narajuba" in ancient India and later localized as the third son of the Chinese deity Li Jing, known as the "Pagoda-Bearing Heavenly King." Nezha is famous for his iconic features—three heads, six arms, Wind-Fire Wheels, and the Magic Circle—and is celebrated for his rebellious yet loyal and righteous character. He has become one of the most representative young heroes in Chinese folklore.
In film and television adaptations, the 1979 animated film Nezha's Triumph Against the Dragon King is an undoubted masterpiece. Its climax, where Nezha sacrifices himself to save his people, is deeply moving.
The 2003 TV series The Legend of Nezha follows Nezha’s growth journey, emphasizing his bravery and justice. Its theme song is a nostalgic favorite for many 1990s kids, including me.
As a traditional mythological figure, Nezha’s story has been repeatedly retold and adapted, continuously integrating social trends and cultural shifts over time. This time, why did Nezha 2 win the hearts of 200 million people?
No. 1 Audience expansion
The Youthology public account has made an interesting classification of moviegoers and explained that the box office ceiling lies with infrequent audiences. And the interests of these people can only be awakened by genres that are easy to understand and emotionally intense.
We can divide the Spring Festival audience into three types, which also represent three different stages of box office performance during the holiday season: the core audience of the film, the holiday-specific audience, and those who originally had no intention of watching a movie. The holiday-specific audience prefers films that are easy to understand and have strong topics. Whether the last group of people goes to the cinema depends entirely on whether the first two groups are willing to take their families to the cinema. This is closely related to the genre of the film, which determines the box office ceiling.
These viewpoints echo what I read in an article by the Urban Data Team, which noted that the popularity of Ne Zha 2 also resonated strongly with audiences in lower-tier cities—a broader demographic in China.
There is a significant difference in movie preferences among people of different urban levels and educational backgrounds. Cities with higher urbanization rates and longer average years of education tend to have a relatively lower preference for Ne Zha 2. In major cities like Shanghai and Beijing, Ne Zha 2 was not the most favored film. In contrast, in the fourth, fifth, and sixth-tier cities, which account for the majority of China's population, Ne Zha 2 had already topped the box office and attendance charts just two or three days earlier.
No. 2 Chinese aesthetics, high-quality animation, and efficient industry synergy
According to Banyuetan (a news agency under Xinhua News), Nezha 2 involved nearly 140 animation companies and over 4,000 staff. Attention to detail was crucial: for example, the armor of the octopus and shark characters had to look rusty and battle-worn, with visible scars. The team spent six months on concept art for just one minute of a battle scene.
Over a decade ago, director Jiaozi founded a small animation studio in Chengdu, which grew with support from local innovation hubs. Eventually renamed Coco Studio, it moved to the Tianfu Changdao Digital Cultural and Creative Park, where key production companies for Nezha 2 were clustered within a hundred meters of each other: Coco Studio handled the production, Mokko Pictures focused on visual effects, Qian Niao Animation took care of art design, and Star Reading Chen Shi managed the dynamic storyboarding. This enabled an efficient "direct hard-disk transfer" collaboration model, integrating the animation industry chain.
No. 3 Challenging prejudices is common, but subverting rules is rare
The first installment of the Nezha film featured the iconic line, "My fate is in my own hands, not in the heavens," because Nezha is born as a "demon," much like Frankenstein's monster. He refuses to accept his predestined fate and strives to break free from prejudice. However, the second film goes further by completely subverting the rules. In the first half of Nezha 2, regardless of their origins, all characters pursue the same goal: to diligently cultivate their abilities and gain recognition from the heavenly realm. Yet, Nezha gradually discovers that the leader of the heavenly realm is actually the true villain—someone who sows discord, endangers lives, and will stop at nothing to preserve his power. Thus, Nezha fundamentally challenges the so-called orthodox ruling class.
This inevitably resonates with audiences. Chinese society has entered a phase where social classes are gradually becoming more rigid, with opportunities for upward mobility slowly closing and stories of downward mobility becoming increasingly common. The rigidity of social classes also signifies the rigidity of social rules—we have discussed the intense competition in education and the devaluation of academic credentials amid high unemployment rates. In this stifling and sometimes desperate environment, stories that break the rules naturally resonate and find a market. Imagine people, during a family reunion or a joyful holiday, seeking excitement from a "feel-good" narrative and then returning to their ordinary lives with a sense of satisfaction.
Despite the many compelling reasons behind the success of Nezha 2, I still have some concerns that I’d like to share. In the following sections, I’ll offer my personal views on why:
The core values of the story still feel outdated and fail to resonate with my fellow female audience, who make up about 65% of the total viewers.
The extreme focus on blockbuster hits will ultimately harm the health of China’s film industry, both aesthetically and from an investment perspective.
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