Wang Jian'er, president of Shanghai Film Group Co, says that an effective way to increase the earnings of animation films in China is to create spinoff shows for popular productions and have commercial collaboration for the most beloved characters.

Last year, Shanghai Animation Film Studio, a branch of Shanghai Film Group, released an eight-episode cartoon series named Yao — Chinese Folktales. It featured stories inspired by Chinese folklore involving immortals, elves and other mythical creatures known as "yao", presented in diverse and individualized aesthetic styles for each episode. The series was popular among viewers as soon as it was released on bilibili.com, a streaming platform.

Shanghai Animation Film Studio is working on a spinoff feature film for the hero of the first episode — a half-human, half-piglet creature with a kind heart. "It will be released next summer," Wang Jian'er says.

But one challenge is that by the time the movie comes out, people may lose interest in a character, as pointed out by Li Jie, president of Alibaba Pictures Co. He found that the public's interest in particular subjects and film genres can fade quickly.

"It usually lasts for no more than 12 months, while the production of a new film usually takes at least 24 months," Li says.

"This means we have to reach beyond the duration of public interest and focus on creating quality films that give people reasons to go to the cinema, to see big-budget films that provide a unique audio-visual experience … I believe that in the coming 10 years, bigger investments will be made in China's film industry and big rewards will be achieved."