Two offices of the Guangzhou Yinjun Trade Company were closed and all related videos were asked to be deleted, Xinhua news agency cited officials in Guangdong as saying.
The company apologized on its official Weibo account, China's Twitter-like platform, saying: "We set the wrong example to increase online video traffic by making videos that contained disturbing and inappropriate content not suitable for children."
The police said the province had no other companies involved in making such videos.
The latest move was a reaction to the controversial "Elsagate" scandal, a public furore surrounding inappropriate cartoons believed to be aimed at children.
Elsa is the main character of the Disney animation "Frozen" and figures in many disturbing cartoons on online video website YouTube.
The action came after China launched a nationwide campaign on Monday to crack down on harmful online cartoons after an online article went viral on the country's social media.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
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