The Hong Kong box office sent out mixed signals when the annual figures were revealed in January. There was jubilation when two local titles rejuvenated the theatrical market with record-breaking results. Anselm Chan’s The Last Dance and Soi Cheang’s Twilight Of The Warriors: Walled In significantly boosted the local market share of Hong Kong productions, which surpassed Hollywood blockbusters and other overseas titles by 5.5% – the first time this had been achieved since 2004.

However, the annual box ­office dropped to its lowest point in 13 years, taking $172.7m (HK$1.34bn) in 2024, and nine venues closed their doors permanently, with the number of theatres in operation down to 55.

“While local films have seen record-high contributions, they cannot compensate for the decline in Hollywood earnings, which traditionally account for over 70% of our box office,” says Timothy Yuen, chairman of Hong Kong Theatres Association. This decline has been partially attributed to the waning popularity of blockbuster franchise titles, such as Marvel’s superhero features, as well as the Hollywood strikes in 2023.

“If box-office revenues remain at this low level, operators will struggle to make money, leading to further closures of cinemas,” says Yuen, who is also general manager of Emperor Cinemas Group.

Theatres have made efforts to diversify their revenue streams, from re-releasing restored versions of classic films to broadcasting live concerts and renting out buildings for events or even birthday parties. “But box-office revenue remains the cornerstone of their business,” says Yuen. “It is essential for the survival of cinemas. Attracting young audiences is essential, as their engagement will significantly impact the future success or failure of the movie industry.”

The local box office scaled new heights when Twilight Of The Warriors: Walled In, from Media Asia, and The Last Dance, from Emperor Motion Pictures, became the second and third local films to break the HK$100m ($12.9m) ceiling. They earned an additional $94.2m (RMB684m) and $29m (RMB210m) respectively in mainland China.

The Last Dance, which stars comedians Michael Hui and Dayo Wong in a sombre funeral drama, went on to become the most successful Hong Kong and Chinese-language film of all time in the territory, with takings of more than $20.6m (HK$160m). An extended 139-minute version will be released in Hong Kong on April 4 after its world premiere at Osaka Asian Film Festival.

Robin Lee’s sleeper hit Four Trails also made its mark. The documentary about a group of elite marathon runners was released on December 6 and ran up total box office of more than $1.16m (HK$9m) – the third biggest doc of all time in Hong Kong.

Positive steps

These are encouraging signs that audiences are still willing to pay, and film companies should be eager to launch new film projects. But rapidly evolving cinemagoing habits make it more difficult for the industry to gauge box-office returns and profits. Reduced levels of production output are an issue: only 46 local films were released last year, including a backlog of titles made during the pandemic, compared to around 55-60 titles per year in the 2010s.

“Amid the ongoing economic downturn, investors are cautious in picking the right projects, just like the audiences are picky in choosing what they watch in cinemas,” says Tin Kai Man, spokesperson and former chairman of the Federation of Hong Kong Filmmakers (FHKF), which comprises 17 film industry guilds. “When the audience has less spending power, it’s a quality over quantity issue. Tough times are a test of how good we can be, which we can’t tell when living in a bubble.

“We focused too much on quantity in the past,” he adds. “Enhancing creativity and making high-quality productions is now the way to build confidence and draw the audiences back.”

Industry veteran Tin set up production banner Ideas Workshop in 2009 having been known for his roles in front of the camera, including as sidekick to Stephen Chow’s character in 2001 hit Shaolin Soccer.

He has produced two films scheduled for release this year: Atonement, co-directed by singer and actor Ronald Cheng in his directing debut; and The Outsider (aka Under Current), directed by Alan Mak and starring Aaron Kwok. Tin is also working with director Mak on Sitou Meitong (working title), a period drama about the titular overseas Chinese leader, which will be shot in a studio in Foshan, China.

Key backers

Maintaining a strong pipeline of local productions is more important than ever, and various private organisations are chipping in to keep the cameras rolling. With the support of Joseph Lau Luen Hung Charitable Trust and World Universal Culture, FHKF launched the Keep Rolling programme to support production during the pandemic.

Two projects have since been completed: Kwan Man Hin’s The Remnant and Jeffrey Lam and Antonio Tam’s Valley Of The Shadow Of Death, which premiered at Tokyo last year. FHKF is lining up further projects by emerging directors.

Lee Hysan Foundation, established in Hong Kong in 1973, continues to be an active supporter of local arts and culture. It most recently backed Adam Wong’s The Way We Talk, first conceived by producer Ho Hong around 10 years ago as a three-part omnibus about people with disabilities; it then shifted into a feature about the young deaf community in Hong Kong.

Ho had secured partial funding from One Cool Film Production, but he and his team decided to take the risk and start filming in 2023 without full financing in place. Lee Hysan Foundation came in with gap financing when the shoot was almost complete.

The film, on which Ho is also a co-writer, had its world premiere at BFI London Film Festival and won the best actress prize at the Golden Horse Awards for rising star Chung Suet Ying. She plays a hearing-impaired woman who strives to be seen as “normal” with the aid of a cochlear implant and eventually embraces sign language in her journey of self-discovery.

“As creatives, we focus on crafting a good script with compelling characters and motivational messages,” says Ho, who was also a writer and director of 2013’s Doomsday Party. “We should have a deep passion and strong commitment to the project, without being overly concerned about market trends. Only when we truly believe in our work can we earn the recognition and support of the industry and audiences.”

To support production output, Hong Kong Film Development Council (FDC) plays a central role in providing funding support. The latest edition of its First Feature Film Initiative (FFFI) comprises six debut feature projects, each receiving a cash prize between $643,000‑$1.03m (HK$5m-HK$8m). These include works supported by established producers such as Amy Chin, Saville Chan, Jacqueline Liu, Mani Man and Pang Ho Cheung, with art director Irving Cheung and scriptwriter Yeung Leung Chuen stepping up as directors.

Earlier this year, FDC introduced the Film Production Financing Scheme 2.0 to motivate investors by reducing their financial risks. One significant rule change allows investors to first recoup 50% of their investment before splitting the revenue between them and the Hong Kong government. A bigger portion of the funding (up from 50% to 70%) will be paid on commencement of principal photography to improve cash-flow of the production.

The government is also implementing liberalisation measures from March 1 through an amendment to CEPA – a free trade agreement between Hong Kong and mainland China – that will allow Hong Kong companies to distribute their films on the mainland, further opening up the vast market.

“We have been calling for direct distribution in the mainland,” says Tin. “We can start with the Greater Bay Area to enlarge the market and schedule day-and-date releases to cut down the window.” Hong Kong is part of the Greater Bay Area, along with nine municipalities in Guangdong Province, most of them Cantonese-­speaking.

While leading film companies such as Media Asia and Emperor Motion Pictures are slowing down production, several exciting projects are in the pipeline. They include Dawn Ho’s feature directing debut Living To Win, starring Raymond Lam and Jennifer Yu, and Ho Cheuk Tin’s Zombies Never Rest, which will be shot in Taiwan, with veteran actor Tai Bo as first-time producer, alongside director Philip Yung as producer. Further upcoming titles include Road To Vendetta, backed by mm2 Hong Kong, which just wrapped its shoot in Japan.

In addition, Yu Sze Long’s Love & Sex On Streaming is in production, while Wu Chui Yi’s Bird Of Paradise, Tom Chung Sing’s Spare Queens and Gamer Girls by Veronica Bassetto and Sophie Yang are in post-­production. All are feature debuts supported by FFFI.