Core businesses in China's animation industry generated 2.8 billion yuan ($438.7 million) in pre-tax profits in 2010, a surge of 65 percent over 2009, according to data released by the Ministry of Culture.

Animation exports were valued at 510 million yuan last year, an increase of 59.87 percent.

Despite the robust growth, the sector still faces problems in the structure of its industrial chain, an excessive proportion of TV animation and derivatives and the small scale of animation companies, industry insiders say.

(Source: China Daily)