The fantasy franchise Kuiba has gained high scores on review websites for its creative storyline, which narrates the adventures of a demon hunter to find his real identity as the monsters' ruler. But its small audiences indicate a limited group of moviegoers were attracted, even after it twice won China's highest honor for animated titles - the "Monkey King Award" presented by China's Animation Association.
Most critics say the industry's main problems are children-oriented plots, copying of American and Japanese classics, and a lack of patience.
"China has many excellent animators with good skills, but they need more time and money from investors," says Cao Xiaohui, vice-president with the Animation Institution of the Beijing Film Academy.
The latest Monkey King took eight years to make and peaked at a 200-member crew, but most of the Chinese animated movies are produced in less than one year.
"The government has supported the animation industry since 2006, by giving lots of subsidies and preferential policies. But some firms have taken advantage of these to go public and earn quick money," he says.
But the former animation director disagrees with the "tailored-for-children" review - the criticism that most of the tales are naive, simple and boring for older viewers.
"It has been a decades-long misunderstanding. No regulations require that animated titles should only be made for and watched by children or teenagers," he says. "If it is a great story with rich imagination, adults will also be attracted."
Cao's opinion is echoed by Zuo Heng, deputy director of cinema studies at the China Film Archives, who says some low-quality titles "insult the audiences' intelligence" with their "silly" tales and dialogue. Zuo says better storytelling skills and language are crucial to raising the quality.
"It's better to let the market decide the survivors," Zuo adds.
Zuo disdains policy supports and subsidies because "weak, lousy" flops may also get a piece of the cake rather than be weeded out.
Nearly 50 percent of mainland animated firms earn one-third of their annual revenues from government subsidies, Ifeng.com reported earlier.
"China's movie market is racing forward. The system and the huge growing number of viewers may not match the pace, but the industry will get on the right track," says Yin Hong, executive vice-president of the Tsinghua School of Journalism and Communication.