(Yicai Global) Jan. 17 -- Tencent-backed Ximalaya, China’s leading online audio-sharing platform, has turned a profit for the first time since being set up 10 years ago, according to its founder.

Ximalaya made tens of millions of Chinese yuan in the three months ended Dec. 31, Yu Jianjun said at the firm’s recent year-end party. Yu, who is also chief executive officer, predicted last August that Ximalaya would become profitable by the fourth quarter and turn a full-year profit in 2023.

Shanghai-based Ximalaya ran up a total net loss of more than CNY2 billion (USD295 million) between 2019 and 2021.

Yu attributed the earnings breakthrough to three factors: better clarification of the firm’s strategy and organization, its long-term principle of creating user value, and cost-cutting and efficiencies.

Other Chinese internet firms have also begun to cut costs and increase efficiency recently in an effort to pare losses and strive for profits because of the financing environment.

By cutting operating, sales, and management costs, Nasdaq-listed audio platform Lizhi turned profitable last year. It reported a net profit of CNY55 million (USD8.1 million) for the first three quarters, versus a net loss of CNY136 million (USD20.1 million) a year earlier. And after more than 10 years of losses, video platform iQiyi had its first quarterly profit in 2022 by reducing costs.

Ximalaya had the most users of any Chinese podcasting platform last year, according to iiMedia Research, with 282 million omi-channel average monthly active users as of the third quarter.

Paid subscriptions, advertising, livestreaming, and other innovative products and services are Ximalaya's four main revenue sources, with the first contributing the most, according to an initial public offering prospectus it filed with the Hong Kong Stock Exchange last March. The IPO was halted since due to disappointing investor interest, according to reports.

Editors: Shi Yi, Futura Costaglione