The film is the first cartoon feature in China to surpass 100 million yuan in box office receipts, the Beijing News said, citing distributor Huaxia.
The comedy portrays a bumbling panda who goes on to become a martial arts star.
Although Chinese critics have praised the film for its story-line and animation, its producer DreamWorks has been criticised for seeking to cash in on China's national treasure, the panda bear.
After its release last month, a short-lived and nationalistic attempt to boycott the film was quickly overwhelmed by positive reviews of the movie.
The release of the film was also postponed in southwest China -- devastated by an 8.0-magnitude earthquake -- to "appease survivors" of the disaster in Sichuan province where many of the world's pandas live, state press said.
The film has also resulted in soul-searching in China's film industry over why domestic movie-makers cannot produce equally entertaining works.
"I cannot help wondering when China will be able to produce a movie of this calibre," the China Daily on Saturday quoted film director Lu Chuan as saying.
Lu said the film was a fresh take on Chinese culture and mixed martial arts films with classic legends.
Lu also took a swipe at government censors who stifle the creativity of film makers by constantly micro-managing how movies should be made, the paper said.

Copyright AFP (Agence France-Presse), 2008