Hollywood blockbusters bombarded Chinese theaters. (CNTV)

Meanwhile, the small budget comedy "Lost in Thailand" suggests that a "down-to-earth" approach for a targeted audience can also bring success.

Xu Zheng, Director of "Lost in Thailand", said, "I have been thinking about how to make comedies to meet the need of Chinese audiences. It has to connect to reality, and connect to the actual mind of people."

Despite the ups and downs of China's film industry in 2012, the year also saw an increasing number of small budget films turn their cameras on ordinary people in real life. Although film-making is a business, audiences will always welcome movie makers who bring something new, something interesting and something artistic.

By Qi Wei (CNTV)