People walk past a poster of the animated feature "Ne Zha 2" at a cinema in Shenyang, northeast China's Liaoning Province, Feb. 6, 2025. (Xinhua/Li Gang)

Chinese animated blockbuster "Ne Zha 2" has shattered multiple box office records, becoming the first film to cross 1 billion U.S. dollars in a single market and the first non-Hollywood title to join the coveted billion-dollar club.

The sophomore outing in the mythological franchise has also set a new record for all-time admissions in China, drawing over 160 million moviegoers, per data from ticketing platforms Maoyan and Beacon.

Helmed by Yang Yu, known as Jiaozi, the film hit the big screen during the lucrative Chinese New Year frame on Jan. 29, surpassing 2017's "Wolf Warrior 2" to become China's most-watched film. Meanwhile, its total revenue (including presales) hit 8 billion yuan (about 1.12 billion U.S. dollars) by Sunday.

In just eight days and five hours after its release, "Ne Zha 2" became China's highest-grossing film of all time on Thursday, exceeding the 5.77 billion yuan record set by "The Battle at Lake Changjin." A day later, it overtook "Star Wars: The Force Awakens" to become the highest-grossing film ever in a single market, reaching over 6.79 billion yuan (including presales) in China on Friday.

A follow-up to the animated sensation "Ne Zha," which grossed 5 billion yuan and topped the country's box office charts in 2019, the sequel has captivated audiences with its breathtaking visuals, rich storytelling and deep cultural resonance.

The record-breaking run makes "Ne Zha 2" not just a box office titan but a cultural phenomenon, further underscoring China's ability to produce homegrown blockbusters that strike a chord with domestic audiences.

Industry analysts are now watching closely to see if "Ne Zha 2" can sustain its momentum and set even higher benchmarks in the days ahead. Maoyan on Sunday night once again raised its domestic box office forecast for the film, now projecting it to surpass 12 billion yuan -- up from its estimate of over 10.8 billion yuan just three days ago. This marks the first time a Chinese film has ever been expected to cross the 10-billion-yuan threshold.

The sequel continues the story of the iconic character from Chinese mythology. Set after the events of the first film, it follows Nezha and Aobing as their souls are saved but their physical forms face dissolution. With the help of the immortal Taiyi Zhenren, who uses the Seven-Colored Lotus to reconstruct their bodies, the two heroes must face numerous challenges.

Taking audiences on an emotional journey that blends action, humor and heart, "Ne Zha 2" alone accounted for half of what has amounted to a historic 2025 Spring Festival holiday box office total -- a total which surpassed 9.5 billion yuan from Jan. 28 to Feb. 4.

This robust performance marks a major win for China's film industry, which faced a tough year in 2024, with box office revenues down 23 percent from 2023 and 34 percent from the pre-pandemic peak in 2019.

In this context, the record-breaking success of "Ne Zha 2" is being hailed as a much-needed boost for the sector.

People walk out of a movie screening room at a cinema in Kunming, southwest China's Yunnan Province, Feb. 3, 2025. (Photo by Peng Yikai/Xinhua)

Maoyan analyst Lai Li described the film as a major milestone, particularly for China's growing animation industry. "The success of 'Ne Zha 2' has set the tone for the year," Lai said. "It highlights the incredible resilience and growth potential of China's film market, and we're excited to see how the rest of 2025 unfolds."

Beyond its domestic success, "Ne Zha 2" is poised to make waves internationally as a cultural bridge, offering global audiences a glimpse into China's rich mythology and traditions.

Jiaozi, who rose to fame following the success of "Ne Zha," has emphasized that the international success of Chinese cinema depends on the intrinsic charm of the works themselves. "It's about whether a script, a story and its characters can move audiences worldwide," he said in a video interview. "These are not things that can be outsourced."

Jiaozi also shared the personal journey the "Ne Zha" films have taken him on, explaining how the series has evolved from his own passion into a broad cultural phenomenon.

"The first step was creating something I loved, and domestic audiences loved it too," he said. "Over time, I've worked to improve it, to refine my craft. I believe that one day, new ideas, deeper meanings, and new soul will emerge from it, and the whole world will be able to appreciate it."

His views have been echoed by film industry experts.

Yin Hong, vice chairman of the China Film Association and a professor at Tsinghua University, attributes the film's success to its sophisticated narrative layers.

"The film's reimagining of mythology, with its portrayal of demon-spirit duality, conflicts between magical and celestial realms, and struggles between heaven and the underwater world, creates a dramatic tension that works on multiple levels," Yin told Xinhua.

"It captures universal themes of childhood development, forming an Oedipal archetype that bridges individual and societal narratives," Yin said, particularly praising the film's subtle yet masterful storytelling.

Rao Shuguang, president of the China Film Critics Association, praised the film for its fusion of traditional Chinese mythology and modern storytelling, which makes it highly relatable to contemporary audiences.

"The film proves that a good movie needs a compelling story, sharp storytelling, and well-developed characters," Rao said, expressing hope that China will continue to produce high-quality films that engage audiences and draw more people to theaters.