If you've been following the ongoing dumpster fire that is Mouse Wars, then you saw this coming light-years away.
Remember that China doesn't have a generation of nostalgia to burn through. They see things as they are, and act accordingly. Every Mouse Wars film has failed horribly in China to date, and Soylo is no different. It will continue to be like this until the regime changes and the new management turns things around.
And that means Culty Kathy has to go.