The producer of the nation's most popular cartoon series Pleasant Goat and Big Big Wolf is hoping to build on its success to forge a more mature cartoon culture that can take the industry to the next level.
The Guangzhou-based Creative Power Entertaining Co (CPE), which has churned out more than 700 episodes of the series, is working on its third installment to be aired during Chinese New Year.
While the storyline remains key to the series' success, viewers are becoming increasingly aware of its technical quality, says Tan Shujun, an animation specialist from the firm.
When CPE launched its Pleasant Goat series in 2005, it was able to take advantage of a void in the cartoon market for the 4-14 age group.
"We created the story lines based on input from students at school," says Shao Haowen, one of the earliest producers of the firm.
"Children don't like being preached to and that is what we tried to avoid.
"We copied foreign cartoons for some stories in the beginning but soon realized it would lead to a dead end. Many viewers would walk away if it appeared even a little bit like a foreign production."
With the series now a hit Shao says, "We try to guide the kids. We present the questions but leave the right-or-wrong answers to them."
Tan, the animation specialist, says the upcoming installment will use flash animation, and three-dimensional effects will account for 80 percent of the series.
Two film sequels launched in 2009 and 2010 each raked in more than 1 billion yuan ($150.49 million) at the box office.
While Chinese companies are as competitive as foreign ones in the technical aspects, a cartoon culture is yet to take root in the country, Shao says.
Moreover, investors looking for quick returns try to play safe by resorting to ancient classics. While these are easily accepted by the public, they also lose their appeal quickly, he adds.
In October, CPE announced that it had reached a television broadcast license agreement with Buena Vista to air its cartoon series on Disney channels in 52 countries and regions in the Asia-Pacific.
The three-year deal covers the broadcasting of the latest 100 episodes of Pleasant Goat and Big Big Wolf - Joys of Seasons, in countries such as Australia, India, Singapore and South Korea in more than 10 languages and dialects.