Youku.com, the largest online video site on the mainland, is targeting more than 100 million yuan (HK$113.93 million) in sales next year, but an initial public offering will have to wait, said chief executive Victor Koo.
'Our target for 2009 is to exceed 100 million yuan in revenue,' said Mr Koo, who did not provide a figure for this year. 'To achieve this level in our second year of monetisation shows a clear path to profitability.'
However, he said the firm was not planning a share sale for this year or next. 'Our primary focus now is proving our business model after successfully proving our product model.'
Dick Wei, an analyst with JP Morgan, said: 'China's online advertising market is worth US$1 billion a year. It won't be surprising for Youku to have 100 million yuan next year, which is only about 1 per cent of the market.'
But whether its business model succeeds depends on its effectiveness as a platform for advertisers. 'Many of those are still testing the media at the moment,' Mr Wei said.
Ever since Google bought YouTube for US$1.65 billion in 2006, YouTube wannabes have flooded the mainland. Entrepreneurs teamed up with venture capitalists to launch more than 100 similar sites.
Youku has raised US$80 million, including US$10 million in debt, from investors including Brookside Capital Partners, Chengwei Ventures, Farallon Capital, Maverick Capital and Sutter Hill Ventures.
