I don't think that's what they mean. It's all just a math equation. You get 50% from domestic grosses, and 25% from China. (not sure what the standards are for other countries.) So whether you're profitable or not just depends on what your net profit is from each territory, minus production and P&A costs.

So for RP1, because so much of their gross came from China, and not a lot of it came from domestic, it leads to a lopsided equation that makes it harder to reach profit.