Wang Changtian, chairman of Beijing Enlight Media, addressed the success of his company's animated juggernaut "Ne Zha 2" and broader industry development during the SIFForum opening session at the 27th Shanghai International Film Festival (SIFF) where the media executive joined fellow filmmakers and industry leaders for a panel discussion in Shanghai on June 15.

Wang Changtian, chairman of Beijing Enlight Media, speaks at the opening forum of the 27th Shanghai International Film Festival in Shanghai, June 15, 2025. [Photo courtesy of SIFF Organizing Committee]

"'Ne Zha 2' represents an inevitable product of China's film industry at its current developmental stage," Wang said. "Yet it remains an exceptional case — not a replicable model with broad promotional or referential value. Unless we reform the underlying mechanisms and systemic issues, China's film sector may prove incapable of weathering the current challenges."

Wang argued the industry must overhaul its approach to genres, storytelling, style and audiovisual execution to improve films' competitiveness. "We're making too many unwanted films that can't compete with other entertainment," he said. He advocates cutting the annual output to 500-600 films — half of China's peak of 1,000 features — while focusing on boosting quality. 

The executive highlighted the film industry's critical challenge of rapidly rising production costs outpacing market capacity, and called for urgent reforms in funding allocation. Wang emphasized the unsustainable risk burden on producers, with annual industry losses exceeding 10 billion yuan which has caused frequent production funding shortages. He stressed the necessity of both cutting costs and addressing profit redistribution to sustain the sector.

"Currently, from every 100 yuan in total box office revenue, only about 33 yuan remains for investors and creators after accounting for theater profit shares, fees and marketing expenses," he noted. "How can we sustain industry investment with such marginal returns?"

Wang proposed repositioning the role of films in the industrial chain by reducing box office revenue's share in total income. China's film industry currently depends on box office sales for over 90% of its revenue — far higher than the 30% seen in foreign markets — making losses inevitable when movies underperform. Wang believes reducing reliance to 50% would be more sustainable, and can be achieved by strengthening films as intellectual property drivers and increasing merchandise revenue.

Merchandise related to the "Ne Zha" film franchise clearly demonstrates this potential. Wang estimated licensed products have already generated tens of billions of yuan in sales. "Even with widespread piracy," he noted, "I believe ultimate derivative sales could realistically reach 100 billion yuan."

"Chinese films going global represents both an inevitable choice and an unstoppable trend," he added. "This aligns perfectly with Chinese products and services expanding their global market presence. As international consumers embrace Chinese goods, their growing interest in the culture behind these products naturally creates opportunities for Chinese cinema overseas. For 'Ne Zha 2,' we anticipate final international box office receipts will exceed $100 million. While this figure may seem modest, it already stands as the highest in 20 years. Conservative estimates indicate the film's total economic impact may surpass 200 billion yuan."

"Ne Zha 2" has already grossed $2.19 billion at the box office worldwide, and is the highest-grossing Chinese film, highest-grossing global animated film and the fifth-highest grossing film of all time in the world.

Film executives pose for a picture at the opening forum of the 27th Shanghai International Film Festival in Shanghai, June 15, 2025. [Photo courtesy of SIFF Organizing Committee]

Chen Zhixi, chairwoman and president of Wanda Cinemas, emphasized the need for industry realignment: "Disney and Universal's 2024 reports reveal a balanced 40-60 revenue split between box office and non-theatrical income. We must restore this healthy equilibrium across both cinema operations and individual film economics through strategic expansion of non-ticket revenue streams."

She added that China now leads globally with over 80,000 cinema screens yet faces a growing shortage of high-quality content. Rising directors increasingly pursue ambitious projects requiring larger budgets and longer production cycles, reducing overall output. To address this, Wanda Film launched a filmmaker support program to help young directors. During the festival, Wanda Film also announced its rebranding as "Rtime" and released plans to develop a super entertainment space strategy integrating various entertainment options.

Veteran filmmaker Huang Jianxin acknowledged the new generation's talent while noting their growing box office anxieties in today's challenging environment. He emphasized the need for a crucial support system to alleviate financial pressures, allowing directors to focus entirely on crafting imaginative, expressive and compelling works. "Producers must help shoulder these burdens — directors aren't economists or marketers. Their power lies in imagination and artistic vision to unleash cinema's magic," Huang stressed.

Li Jie, president of Damai Entertainment, emphasized innovation as the proven solution to industry challenges. The current market slowdown, he noted, ironically creates an ideal window for creative breakthroughs. "Boom periods chain us to box office demands, leaving no space for creativity," he said. "Today's climate instead encourages patience and innovation across all aspects of filmmaking. Cinema must not be an outdated format, it has to go beyond, and to reclaim young audiences — and innovation is how we'll achieve this."