This photo taken on Feb. 13, 2025 shows a poster for the Chinese animated film "Ne Zha 2" at a cinema in Chaoyang District of Beijing, capital of China. [Photo/Xinhua]

As the credits rolled on "Ne Zha 2" in a packed cinema, Zhou Jianmin, CEO of Zhejiang Huaguoshan Cultural Media, felt a surge of pride, perfectly articulating it with, "Seeing our team's names on the screen made every hardship of the past year worthwhile."

"This film proves that China's animation industry can rival global giants in both storytelling and technical prowess," Zhou added.

The Chinese New Year blockbuster reached a milestone on Thursday, with ticket sales hitting 10 billion yuan (about 1.39 billion U.S. dollars), making it the first animated film in global cinema history to achieve this in a single market.

Beyond its cinematic success, the film's ripple effects on tourism, retail, and capital markets provide a glimpse into China's evolving economic dynamism.

SMALL PLAYERS POWERING A BLOCKBUSTER

According to data provided by the film's creative team, "Ne Zha 2" featured nearly 2,000 visual effect shots, an impossible scale for a single studio to handle.

This herculean task was achieved through a production network comprising 138 companies, with over 80 percent, or 115 firms, being small and medium enterprises (SMEs) scattered across tech hubs like Beijing, Chengdu, Suzhou, and Shenzhen.

These firms handled multiple production stages including animation development, visual effects compositing, and art design -- tasks that are often outsourced overseas by Hollywood studios.

Chengdu-based animation studio Yunhai Tianju, for instance, dedicated about 30 employees to work onsite with lead animator Chengdu Coco Cartoon Co., Ltd. for over two years. "'Ne Zha 2' brought together top talents from across the country, elevating the film and television industry," said Han Yunlong, general manager of the studio.

"Through dynamic exchanges and technical collaboration among professionals, national industry standards are continuously being raised," Han added.

Meanwhile, industry titans like Enlight Media, the film's major producer, streamlined funding and distribution, triggering a 264 percent stock surge within just eight trading days after release.

The model mirrors China's animation industry playbook: SMEs inject niche expertise and cost efficiency, while conglomerates scale output. "The collaboration of outstanding animation companies nationwide is like the 'wanlinjia,' or armor of 10,000 scales, of the animation industry," said Shi Chaoqun, the film's visual effects director.

FROM SILVER SCREEN TO TOURIST TRAILS

Beyond theaters, the film's success has sent ripples through China's cultural tourism market. Cities tied to Ne Zha's legend are racing to transform cinematic buzz into economic gains, introducing innovative tourism products centered on the mythical figure.

Tourism platform Tongcheng reported a fivefold spike in searches for "Ne Zha-themed trips." In Sichuan's Yibin, home to ancient temples honoring the mythical hero, visitors flocked to newly launched attractions like the "Dragon Palace" experience and themed events, driving a 34 percent jump in hotel bookings in Yibin's Cuiping district.

Tianjin, meanwhile, leaned into its claim as Ne Zha's "hometown," blending the deity's lore with local landmarks.

"Cultural and tourism consumption is a key driver of service-based spending," said Zeng Guang, assistant director of the Economic Research Institute at Guosen Securities.

He noted that the growth rate of service consumption, led by tourism, will likely outpace the overall economic growth rate.

MERCHANDISING GOLD RUSH

On top of tourism heat, Ne Zha merchandise, from toys to limited-edition figurines, is flying off shelves. Hunan Sunny&Sandy Toys Manufacturer Co., Ltd., holding the exclusive license of 3D plastic candy toys for the movie "Ne Zha 2," saw its cumulative sales for Ne Zha figurines on online and offline platforms top 200 million yuan since Jan. 31.

To cater to the surge in market demand, the company had to adjust its production schedule, recalling over 500 employees to return to work during the Spring Festival, said Yang Zhenlin, assistant to the president of Sunny&Sandy.

Currently, with nearly 60 production lines operating simultaneously, the firm's monthly production capacity for Ne Zha-themed products has reached 6 to 8 million units.

The craze reflects China's consumption upgrade, where fans splurge beyond tickets. "Many consumers have commented on social media and livestream platforms that they loved our products," Yang said.

The historic box office success demonstrates both the enhanced global competitiveness of China's domestic animation industry, and the pivotal role played by the rise of China-chic cultural trends, Yang added.