The first trading day following the Spring Festival holiday on February 24th saw a sharp decline in the film and entertainment sector, which stood in stark contrast to the broader upward trend of the A-share market. For instance, China Film Group Co.,Ltd. (600977.SH) fell 9.97%, Wanda Film Holding Co.,Ltd. (002739.SZ) dropped 10.01%, Hengdian Entertainment Co.,Ltd. (603103.SH) declined 10%, Beijing Enlight Media Co.,Ltd. (300251.SZ) plunged 19.99%, Shanghai Film Co.,Ltd. (601595.SH) decreased 10%, and Bona Film Group Co.,Ltd. (001330.SZ) fell 10.02%. The market widely attributes this downturn to the disappointing performance of the 2026 Spring Festival box office.
According to the "2026 Spring Festival Box Office Market Insight Report" released by Lighthouse Institute, the total box office revenue for the 2026 Spring Festival period was 5.75 billion yuan, marking a year-on-year decline of 39.5%. Total cinema attendance reached 120 million, down 36.8% compared to the previous year, while the average seat occupancy rate was 22.2%, nearly halving year-on-year. Although "Pegasus 3" led the holiday period with box office earnings of 2.927 billion yuan, its associated companies, including MAOYAN ENT (01896.HK), DAMAI ENT (01060.HK), Wanda Film Holding Co.,Ltd., and Bona Film Group Co.,Ltd., failed to gain favor in the secondary capital market.
Furthermore, several companies involved in cinema operations and theater chains, such as Wanda Film Holding Co.,Ltd., Guangzhou Jinyi Media Corporation (002905.SZ), and Omnijoi Media Corporation (300528.SZ), also experienced significant stock price declines. The Spring Festival period is often viewed as a barometer for the entire year's market sentiment. A weak start naturally lowers market expectations for the remainder of the year.
Looking at the performance across the A-share and Hong Kong markets on February 24th, nearly all film and media companies associated with the Spring Festival releases saw their stock prices fall. This downturn affected the entire industry chain, from upstream production and investment to midstream distribution and downstream exhibition, with very few exceptions.
The top-grossing film of the 2026 Spring Festival, "Pegasus 3," had nine production companies. Among the seven listed companies involved—MAOYAN ENT, DAMAI ENT, Wanda Film Holding Co.,Ltd., Bona Film Group Co.,Ltd., China Film Group Co.,Ltd., Hengdian Entertainment Co.,Ltd., and CHINA RUYI (00136.HK)—all saw their share prices drop on February 24th. The Hong Kong-listed entities, MAOYAN ENT, DAMAI ENT, and CHINA RUYI, resumed trading on February 20th. Aside from a 2.82% rebound for CHINA RUYI on February 23rd, their prices trended downward throughout the period.
Statistics indicate that among the new releases during this year's Spring Festival, China Film Group Co.,Ltd. was the most active investor, followed by DAMAI ENT and MAOYAN ENT. China Film Group Co.,Ltd. participated in producing "Pegasus 3," "Silent Awakening" (867 million yuan), "Biao Ren: Wind Rises in the Desert" (806 million yuan), "Boonie Bears: Always There" (713 million yuan), and "Starry Dream" (80.5787 million yuan). DAMAI ENT was a primary producer for "Silent Awakening" and "Biao Ren: Wind Rises in the Desert," and also co-produced "Pegasus 3." Additionally, DAMAI ENT handled distribution for "Silent Awakening" and "Boonie Bears: Always There." MAOYAN ENT was involved in "Pegasus 3" and "Boonie Bears: Always There." So far, "Pegasus 3" appears to be the only consistently profitable film; the performance of others will depend on their subsequent box office trajectory.
The report highlights that the Spring Festival period has the strongest audience attendance habits, characterized by family viewing traditions and increased influence of group decisions. Genres like comedy, sci-fi, war, and animation are particularly suitable for family audiences. Furthermore, since the 2021 Spring Festival, approximately 60% of films surpassing 1 billion yuan in total revenue have been sequels. Judged by this standard, several films in the 2026 lineup did not align well with typical Spring Festival preferences.
Regarding the stock declines for downstream exhibition companies, the view is that the Spring Festival represents the annual peak for cinema attendance. However, despite scheduling numerous screenings this year, total attendance dropped by over a third. Attracting substantial audience traffic in the following ten months will be more challenging, barring the emergence of a blockbuster like "Zootopia 2" from late last year, which is not a guaranteed occurrence.
The significant drop in film and media stocks is seen by many industry insiders as reflecting investor expectations for the future. The sharp decline during the Spring Festival has fostered pessimism among some professionals, investors, and analysts regarding the 2026 film market. Superficially, the 2026 Spring Festival box office of 5.75 billion yuan is comparable to the 5.77 billion yuan achieved in 2018. However, the 2018 period produced two films each earning over 3 billion yuan—"Detective Chinatown 2" and "Operation Red Sea"—and both attendance numbers and seat occupancy rates were significantly higher than in 2026. Additionally, the average ticket price in 2018 was 39.7 yuan, whereas it has not fallen below 40 yuan in any subsequent Spring Festival.
This year's performance demonstrated that the success of "Nezha: The Devil's Chaos" involved considerable unpredictability. Moreover, while the Spring Festival红利 is significant, it does not suit every big-budget production. Whether it is necessary to crowd into the Spring Festival period is a question that may prompt reflection among some companies.
For the 2026 film market, the immediate challenge is overcoming the sluggish start of the Spring Festival. The industry still relies on major blockbusters, particularly commercial films that can attract female and family audiences. Historically, the influence of the Spring Festival period extends into April, sometimes reaching the May Day holiday. During this time, some imported films gradually enter the market. The performance in 2025 showed that sequels to major IPs, like "Zootopia 2" and "Avatar 3," still possess strong box office appeal.
Currently, imported films such as "Wuthering Heights" and "Los Angeles Heist" are scheduled for release in March. Furthermore, according to various media reports, sequels like "Spider-Man 4," "The Avengers 5," and "Dune 3," along with Christopher Nolan's new film "Odyssey," are expected to be introduced. Regarding domestic productions, "Welcome to Dragon Restaurant," starring Shen Teng and produced by companies including DAMAI ENT, China Film Group Co.,Ltd., and Wanda Film Holding Co.,Ltd., as well as "Catch the Spy," directed by Feng Xiaogang and produced by DAMAI ENT and China Film Group Co.,Ltd., are anticipated to be released in 2026.
Overall, while there is a relatively high number of imported IP sequels scheduled for this year, the strength of their audience appeal remains to be seen. The domestic film supply still requires more high-quality blockbusters.