(Yicai) April 22 -- Shares of Enlight Media plunged despite the Chinese production company behind animation blockbuster Ne Zha 2 reporting a larger profit in the first quarter of this year than last year’s total.

Enlight Media [SHE: 300215] closed 10.3 percent down at CNY5.47 (75 US cents) in Shenzhen today, after surging 10.9 percent yesterday as investors had already anticipated the strong first-quarter performance.

Net profit widened 375 percent to CNY2 billion (USD275.7 million) in the three months ended March 31 from a year earlier, the company said in its first-quarter earnings report released late yesterday. Revenue jumped 178 percent to nearly CNY3 billion.

Enlight Media also released its 2024 financial statement yesterday. Its net profit shrank 30 percent to CNY292 million (USD40 million) last year from the year before, with revenue inching up 2.6 percent to CNY1.6 billion.

The firm’s net cash flow from operating activities totaled CNY4.9 billion during the first quarter, up 5,820 percent from a year earlier, while the net cash last year was only CNY339 million, down 47.2 percent year on year, according to data from yesterday’s statements.

The strong first-quarter performance was mainly thanks to the undisputed box office success of Ne Zha 2 and its merchandise sales, Enlight Media noted. In comparison, last year’s weak results were mostly because of the absence of major box office hits, the company added.

Ne Zha 2’s global box office has reached CNY15.7 billion (USD2.15 billion), making it China’s highest and the world’s fifth highest-grossing film of all time, according to movie data platform Beacon Pro. Distributors have extended Ne Zha 2’s theatrical screening in the Chinese mainland for the third time by another month to May 31.

The first-quarter earnings report did not break down revenue sources. But based on Enlight Media’s early calculations that a box office of CNY4.8 billion would generate CNY950 million to CNY1 billion in revenue, Ne Zha 2’s earnings made up almost all of the company’s revenue in the first quarter.

Animated films are becoming a core focus for Enlight Media. The first-quarter report showed that it plans to release two new animated films this year, with six others in production and 10 in development.

Early last month, Enlight Media invested CNY1.2 billion to acquire an office building near Beijing’s Olympic Park for its growing animation division, which has become its largest and continues to recruit specialized talent.

Editors: Tang Shihua, Futura Costaglione