The new king of the Chinese box office is an adorably ugly, demonic child fighting off monsters.

In less than two weeks since its release, “Ne Zha 2,” an animated film based loosely on Chinese mythology and a famous 16th century novel, has become the highest-grossing movie ever in China, with more than $1 billion in ticket sales. It is also the first film not made by a Hollywood studio to cross that mark.

The blockbuster delivered a rare dose of good news for the Chinese film industry, which is struggling with anemic ticket sales and a slumping economy. The few films that break through the malaise are no longer Hollywood titles, but domestic features teeming with patriotic messaging or rooted in traditional Chinese culture or folklore.

“Ne Zha 2” is a sequel to what had been the highest-grossing animated film in China. In the 2019 original, Nezha is born as the reincarnation of a demon with supernatural powers, but destined to live only three years. He fights back against his fate and saves his village.

In the sequel, Nezha revisits a similar theme. He challenges the political order and authority governing gods and demons, fighting the Dragon King of the Four Seas and other creatures.

“ ‘Ne Zha 2’ is the rare movie that hits all the marks,” said Raymond Zhou, an independent Chinese film critic. “It targets all demographics, and has successfully won over all of them.”

The movie has pulled in $1.2 billion in ticket sales since its release on Jan. 29, at the start of the Chinese Lunar New Year holiday, according to Maoyan, a Chinese entertainment data provider. Its haul is already more than double the highest-grossing movie of 2024. The film, distributed by CMC Pictures, will be released in North America on Friday.