Chinese authorities have confirmed that the distributor for martial arts film Ip Man 3 fraudulently inflated box office numbers for the film after its release on March 3, the  WeChat account of China Film News, an official media outlet of the State Administration of Press, Publication, Radio, Film and Television, reported Friday.

The Wilson Yip film starring Hong Kong martial arts actor Donnie Yen grossed 783 million yuan ($121 million) in the Chinese mainland until Sunday morning in theaters, according to data from EntGroup's China Box Office.

However, as the films box office surged, so too did suspicions that the film's distributor Max Screen had influenced box office results through fake screenings.

According to the China Film News report, the China Film Bureau has stated that the results of more than 7,800 screenings of the film were falsified to increase box office results by 32 million yuan. Additionally, Max Screen has admitted that it had purchased 56 million yuan in tickets itself.

In addition to suspending Max Screen's distribution licence for a period of one month, the China Film Bureau has also issued official warnings to 73 cinemas and three online retailers involved in the fraud.

The booming Chinese film market and box office is one of the most eye-catching aspects of China's cultural development in recent years.

However, occasional box office scandals have revealed industry flaws that have raised concerns among those in the film industry both in China and abroad.