MoonFox Analysis -- Ne Zha 2 Rages Across the Sea, Sparking the First Frenzy of the Year in the "Goods" Community

Box Office Performance - The animated film Ne Zha 2 grossed RMB 4.839 billion during the 2024 Chinese Spring Festival movie season, contributing over 50% of the total box office revenue of RMB 9.51 billion, which is an 18.6% increase compared to the previous year [1][3][5] - The total box office revenue in China for 2024 was RMB 425 billion, reflecting a decline from previous years, indicating a prolonged "winter period" for the domestic film consumption market [2][3] Industry Trends - The Chinese film industry is shifting from a focus on box office revenue to nurturing intellectual properties (IPs), with a significant emphasis on building an "IP ecosystem" [5][9] - The 2025 Spring Festival movie season featured a lineup where five out of six films were IP-based sequels or adaptations, highlighting the industry's competitive shift [5][6] User Engagement and Consumption - The Average Daily Active Users (DAU) on the Taopiaopiao app reached 1.968 million during the 2025 Spring Festival, marking a 15.2% increase from 2024, indicating a sustained interest in movie ticketing apps [3][5] - The success of Ne Zha 2 has led to a surge in derivative product sales, with Pop Mart's collaboration resulting in a peak DAU of 770,000 for its mini-program, reflecting a more than fivefold year-over-year increase [10][12] Derivative Products and IP Ecosystem - Ne Zha 2's success is attributed to its strong IP ecosystem, which includes high-quality production, a range of spin-off products, and user engagement strategies [6][9] - The film's derivative products have transformed from being supplementary to box office revenue to becoming a core component of the commercial value realization in the film industry [9][15] Emotional Engagement and Market Evolution - The film industry is evolving towards emotional engagement, with some perspectives suggesting that revenue from derivative products should surpass box office earnings in mature markets [14][15] - The success of Ne Zha 2 illustrates the importance of transforming IPs into sustainable emotional connections to achieve commercial growth [15]