The animation boom in China motivates Imax to expand in Asia through its premium theatre operations specifically with the success of "Ne Zha 2."

The success of Ne Zha 2 contributed to IMAX's market entry strategy in Asia because of China's growing animation sector. The Chinese audience has watched the animated sequel earn more than RMB14.8 billon ($2.06 billion) which solidifies its spot as one of China's top-grossing films.

IMAX CEO Rich Gelfond commended the animated film for its superior animation quality coupled with its humorous elements and exciting plot. According to him the film contained all the necessary components for a blockbuster along with remarkable animation quality. The success of the movie was supported by its 3D format since IMAX technology powered roughly 55% of its screenings.

The animation market in China continues its upward growth because consumers want superior storytelling combined with impressive visual effects. "Ne Zha 2" joins numerous franchise films that are leading the current film industry pattern of performance success. The animation branches of Alibaba along with Wanda are working on multiple upcoming feature films and China has strong projections for upcoming blockbusters such as "How to Train Your Dragon" and "Zootopia 2."

IMAX operates a larger presence in Japan to capitalize on the success of anime smash hit "Demon Slayer: Infinity Castle" as the market experiences expanding ticket sales. The growing animation market in Asia provides a strong opportunity for IMAX with its expanding Chinese network of 796 locations since the company prepares to expand more business ventures.