On February 8, CCTV reported that ticket sales for Ne Zha: The Devil’s Birth reached 6.808 billion CNY (approximately 934 million USD) in the Chinese market alone. This figure surpasses that of Battle Through the Heavens: The Legend of the Gods, marking the highest-grossing animated film in the global box office.
The film is projected to hit 10 billion CNY (1.37 billion USD) in revenue, creating a monumental milestone in box office history. Many internet users in China enthusiastically suggested a “10 billion challenge,” encouraging viewers to buy tickets to help the film reach this impressive box office milestone.
Before the release of Ne Zha 2, audiences were particularly curious about the earnings of director Ao Jian (born in 1980, real name Duan Yu). How much money would he make from this film?
Why is Ne Zha 2 a Sensation and Achieving Record Revenues?
The Lunar New Year is the peak movie season of the year, with numerous blockbuster films competing fiercely. Before the holiday movie season began, few anticipated Ne Zha 2 would achieve such high box office revenue.
Even estimation platforms had predicted Ne Zha 2 would gross around 4 billion CNY. However, just nine days post-release, the film had already surpassed every box office record in China, becoming a new benchmark in revenue.
Currently, the revenue of Ne Zha 2 continues to rise dramatically, with the latest reports indicating it could reach 10.8 billion CNY. If this figure becomes a reality, the film will achieve unprecedented milestones, possibly breaking records that are yet to be established, particularly as currency exchange rates fluctuate.
Ne Zha 2 is an animated film, so it doesn’t incur high costs associated with live-action actors – a significant portion of expenses in other films.
For instance, some films have production costs around 500 million CNY, yet the actors’ salaries alone can take up nearly half of that. In contrast, Ne Zha 2 has renowned actors but their cost is significantly lower compared to that of live-action performers.
However, animated films also have their own substantial costs, especially in visual effects (VFX).
The success of Ne Zha 2 does not solely rely on box office numbers. The storyline of Ne Zha and the Dragon King is engaging but not particularly groundbreaking. The crucial factor that transformed the film into a success is the high-quality animation and visual effects. The stunning visuals have captivated audiences and contributed to the phenomenal box office revenue.
The production process, characterized by meticulous creativity, involved significant investment. Ne Zha 2 took five years to complete, and during this time, the director collaborated with international VFX companies but did not achieve the desired results. Ultimately, Chinese animation studios came together to create this masterpiece, earning Ne Zha 2 rave reviews from audiences.
Director Ao Jian Could Earn Hundreds of Millions USD
On paper, Ne Zha 2 involves five production companies. However, in reality, only two main entities have a significant share of the profits: the director’s company and Light Chaser Animation, along with its subsidiaries.
According to some sources, among the five major films released during this Lunar New Year, four films are backed by Weibo, with only Ne Zha 2 lacking Weibo’s sponsorship. Many users on Weibo have expressed their concern that they “lost the chance,” but following the release, it was reported that Light Chaser did not allow external investment, except from the parent company and the director.
With the current success, Light Chaser is indeed the largest beneficiary, but if the film fails, they might still face significant losses.
Industry experts indicate that box office revenue is divided into four parts: 5% for distribution development, 3.3% for special taxes, 50%-57% for cinema chains, and 35%-40% for production companies. If the revenue reaches 10.8 billion CNY as projected, the production company could potentially receive around 4.32 billion (based on a 40% share), according to 163.
With production costs around 500 million CNY, the net profit for the production company would amount to approximately 3.82 billion CNY. If this is divided between the director and Light Chaser, the director could earn around 1.91 billion CNY (262 million USD), assuming the film performs as expected with a revenue of 10.8 billion CNY.
However, the exact profit-sharing ratios between the parties remain confidential, and the figures provided are merely estimates based on market standards.
