China Box Office: Pegasus 3 Soars, But Lunar New Year Sales Drop 39%

China’s Lunar New Year film market delivered a mixed performance, with Han Han’s racing comedy Pegasus 3 dominating the box office but overall ticket revenue falling significantly compared to the previous year. The film earned $369.3 million during the first six days of the holiday period, February 17-22, according to data from Artisan Gateway.

While Pegasus 3’s opening is substantial, the overall holiday box office revenue totaled $715 million (RMB 5.1 billion), a 38.6 percent decrease from the $1.2 billion (RMB 8.3 billion) generated during the first six days of the 2025 Lunar New Year holiday. This downturn raises concerns about the health of the world’s second-largest film market.

Zhang Yimou’s espionage thriller, Scare Out, landed in second place with $110.7 million. The film, starring Jackson Yee and Zhu Yilong, represents the veteran director’s return to the spy genre after the 2021 success of Cliff Walkers. Alibaba Pictures is handling distribution for Scare Out.

Rounding out the top four were Blades of the Guardians, a martial arts epic directed by Yuen Woo-ping, with $97.3 million and the animated family film Boonie Bears: The Hidden Protector, which earned $89.7 million. Jackie Chan’s Panda Plan 2 brought up the rear with $24.6 million.

Pegasus 3, the third installment in Han Han’s popular franchise, follows driver Zhang Chi, played by Shen Teng, as he leads a new racing team in an international rally. The film’s production involves a consortium of companies including Shanghai Tingdong Film Co., Maoyan Damai Entertainment, Bona Film Group, and Wanda Pictures.

Industry analysts note that the Lunar New Year holiday is a crucial indicator for the entire year’s performance in the Chinese box office. Last year’s holiday winner, Ne Zha 2, went on to achieve a $2.2 billion global box office total, contributing to a full-year recovery for the Chinese film market. However, Pegasus 3 is currently projected to reach approximately $622 million (RMB 4.3 billion), a figure that, while significant, is unlikely to offset the overall market weakness.

The underperformance of the holiday lineup highlights the increasing volatility of the Chinese theatrical market, where a single blockbuster can heavily influence the annual trajectory. Theater operators are beginning 2026 at a deficit, placing pressure on the local film industry to deliver hits later in the year to reverse the current downward trend.