The summer movie box office in the country is expected to surpass CNY6 billion (approximately USD890 million), but a recent wave of film cancellations and tepid earnings forecasts from listed film and TV companies indicate that the industry’s recovery is facing significant hurdles.
According to data from a leading cinema analytics provider, this season’s total gross, including advance sales, is projected to hit CNY6 billion, representing an increase of roughly CNY600 million (about USD88.6 million) compared to the same period last year. However, during this timeframe, six films have already been pulled from release, highlighting ongoing market struggles. The eliminated titles include The Decisive Moment, Three Kingdoms: The Beginning, Gohan, Just Kidding, The Rise of the Great Sage, and Battle of Penghu.
Industry experts suggest that these cancellations are primarily due to disappointing box office performance. For instance, Three Kingdoms: The Beginning announced its withdrawal on July 25, citing market conditions as a obstacle: “The current market environment no longer allows viewers to comfortably attend screenings of this film.” Since its release on July 10, the animated feature has accumulated only about CNY87.4 million (USD12.9 million) in box office revenue, including prior sales.
Furthermore, competition is expected to heat up in August with the arrival of major international films such as Spider-Man: Brand New Day and The Odyssey, prompting some producers to withdraw their films rather than risk competing directly.
The sluggish market has also impacted publicly listed film and television firms. Out of 12 companies in the sector that have issued earnings forecasts for the first half of the year, 10 anticipate losses, underscoring that the industry’s downturn appears to be ongoing.
One notable company operating cinemas and related ventures estimates a net loss attributable to shareholders between CNY52 million and CNY75 million for the first six months of the year, compared with a profit during the same period in the previous year.
The company pointed out that initial box office revenue in the first half of the year was CNY17.4 billion, a 41% decline from the previous year, while cinema attendance dropped 34%, totaling 422 million admissions. Contributing factors include a shortage of high-quality films, weakened consumer demand, and increasing competition from alternative entertainment options—all of which have impacted revenue from cinema operations and associated businesses.