This is the story of the little film that could. Ne Zha 2 has completely shattered expectations, reaching $1.7 billion in box office earnings to become the highest-grossing animated film in history, surpassing Inside Out 2.
Even more remarkably, it’s the first non-Hollywood film to cross the billion-dollar mark, achieving this feat almost entirely through Chinese ticket sales. During the 2025 Lunar New Year period alone, 250 million viewers filled theaters to watch this sequel, which many didn’t even know existed, until now.
The Chinese animated film builds on the foundation laid by its 2019 predecessor, which earned $719 million by reimagining a classic tale. Ne Zha tells the story of a demon child born with fire powers and cursed to die in three years.
Rather than accept his fate, he forms an unlikely friendship with Ao Bing, the Dragon King’s son. The sequel raises the stakes as the pair battle against the Dragon King himself and challenge the rigid world of gods and demons that seeks to control them.
The path to Ne Zha 2’s unprecedented success mirrors the streaming-to-theater pipeline that benefited Hollywood hits like Moana, but with a crucial difference. After its theatrical run, the original Ne Zha found a massive new audience through streaming platforms.
These viewers, drawn in by the film’s blend of Chinese mythology and contemporary storytelling, flocked to watch the sequel. When it arrived, they turned out in record numbers, breaking the single-day box office record eight consecutive times during the Lunar New Year period.
China’s growing animation prowess is nothing to scoff at. Ne Zha 2 has managed to match the technical excellence of Disney, Pixar, and DreamWorks while speaking directly to Chinese audiences through their own cultural lens. This combination has proved irresistible even as theaters globally struggle with rising ticket prices and streaming competition.
The film has now entered the top 10 highest-grossing films of all time, and it’s only a matter of time before it reaches $2 billion, which would push it past both Star Wars: The Force Awakens and Avengers: Infinity War. This milestone arrives as Hollywood’s influence in China continues to wane from its 2017 peak, while domestic productions flourish.
Ne Zha 2’s extraordinary performance has already pushed China’s 2025 box office to $2.75 billion in just 53 days, a mark that took three months to reach in 2024.
