DJI's strongest competitor is preparing for a Hong Kong IPO, with SoftBank, Baidu, and Hillhouse as shareholders. It is the second-largest agricultural robot and agricultural drone company in the world.

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According to the Hong Kong Stock Exchange’s disclosure on March 26, Guangzhou XAG Technology Co., Ltd. has submitted a listing application to the main board of the Hong Kong Stock Exchange, with Huatai International as the sole sponsor.

Comprehensive | Prospectus Editor | Arti

This article is for informational exchange only and does not constitute any trading advice.

According to the prospectus, XAG Technology is a global leader in agricultural robotics. Based on Frost & Sullivan’s data, the company is ranked second in the world agricultural robotics and agricultural drone industry with market shares of 10.7% and 17.1% for the year 2024, respectively.

Through the deep integration of advanced robotics, intelligence, and new energy technologies, XAG Technology has created a series of intelligent agricultural robots with high precision operational capabilities, whose efficiency and effectiveness far exceed human labor and traditional agricultural machinery, continuously addressing the world’s largest agricultural production demand— the “无人种地” (unmanned farming) issue, leading an industrial revolution.

After 18 years of in-depth research and development, sales, and other fields in agricultural robotics, the company was recognized as a key “Little Giant” enterprise by the Ministry of Industry and Information Technology in 2025, and in 2024 it was recognized as a national-level manufacturing single champion enterprise by the Ministry of Industry and Information Technology, achieving numerous significant accomplishments.

Upholding the mission of enhancing agricultural production efficiency, the company has focused its R&D goals on the management aspects of agricultural production since its inception, aiming to fill the growing agricultural labor gap through “robots replacing humans.” In 2015, the company started with the pesticide spraying process, which has the most severe labor conditions, launching the pioneering product of agricultural robots—an electric-driven multi-rotor autonomous agricultural drone.

With a profound understanding of the diverse needs for crop management across different operational tasks and terrains, as well as foundational technologies in agricultural drone R&D, the company further expanded its product matrix, introducing agricultural unmanned vehicles, agricultural machinery autopilots, and intelligent farm IoT products.

The company has also developed mobile applications that allow end-users to remotely operate its agricultural robots and monitor field conditions in real-time. By building a complete agricultural robot product matrix and data closed-loop, the company provides precise, efficient, flexible, and economical unmanned agricultural solutions to end-users.

During the performance record period, XAG Technology achieved steady growth and significant progress in financial performance. The company’s revenue increased by 73.4% from 615 million RMB in 2023 to 1.066 billion RMB in 2024, and further increased by 9.5% to 1.166 billion RMB in 2025.

In addition to revenue growth, the company also achieved significant improvement in profitability. Although the company recorded a net loss of 133 million RMB in 2023, it turned profitable in 2024 with a net profit of 70.4 million RMB, and the net profit further increased by 75.9% to 124 million RMB in 2025.

The company recorded an adjusted net loss (non-IFRS measure) of 136 million RMB in 2023, and an adjusted net profit (non-IFRS measure) of 72 million RMB in 2024, which then increased by 91.1% to 138 million RMB for the year ending December 31, 2025.

As of December 31, 2025, XAG Technology’s accumulated losses amounted to 800 million RMB, primarily due to the company’s continuous investment in R&D and business expansion since its establishment in 2012. Since its founding, the company has prioritized technological innovation and product development in the agricultural robot industry. The long-term commitment to R&D, combined with a relatively limited revenue base in the early years and ongoing operating expenses, has led to accumulated losses over time. These investments are crucial for establishing the company’s core technological capabilities and market position.

The prospectus indicates that XAG Technology’s shareholders include SoftBank, Baidu Capital, Innovation Works, Yuexiu Industrial Fund, Hillhouse, and others.

The funds raised from this Hong Kong IPO by XAG Technology are intended for the following purposes: to invest in R&D for agricultural robot products, covering all aspects of crop management, thereby enhancing the company’s market share and visibility and maintaining its leading position in the agricultural robot industry. To further expand the company’s global sales and service network, enhancing the company’s global brand awareness, market penetration, and service efficiency. To establish a new headquarters that will become the central hub for the company’s management, research, and innovation activities. To serve as working capital and for general corporate purposes.