Chinese Drone Maker XAG Files for Hong Kong IPO After First Annual Profit
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Founded in 2012, XAG is China’s second-largest agricultural drone maker.
Chinese agricultural drone maker XAG Co. Ltd. has filed for an initial public offering in Hong Kong, its second attempt to go public in nearly four years.
The Guangzhou-based company submitted its application on Sept. 25, with Huatai International as the sole sponsor, according to the filing. XAG previously withdrew a 2022 bid to list on Shanghai’s STAR Market.
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- XAG Co. Ltd., China’s second-largest agricultural drone maker with a 20.8% market share, filed for a Hong Kong IPO after recording its first annual profit in 2024.
- Revenue in 2024 rose 73.6% to 1.07 billion yuan ($147 million), with net profit at 70.4 million yuan; first-half 2025 profit was 130 million yuan, up 48.5%.
- Overseas revenue now makes up 25.2% of total; its IoT segment grew 195.8% year-on-year in first-half 2025.
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Who’s Who
- XAG Co. Ltd.
- XAG Co. Ltd., a Chinese agricultural drone maker, has filed for its second IPO in Hong Kong, aiming to fund expansion after achieving its first annual profit in 2024. The company generated 1.07 billion yuan in revenue in 2024, posting a net profit of 70.4 million yuan. XAG is the second-largest player in China's agricultural drone sector with a 20.8% market share in 2024.
- DJI Technology Co. Ltd.
- DJI Technology Co. Ltd. (大疆创新) is identified as an industry giant and a major rival to XAG Co. Ltd. in the agricultural drone sector. According to a Frost & Sullivan report, DJI Agriculture held a dominant 63.9% market share by revenue in China's agricultural drone sector in 2024, significantly outperforming XAG's 20.8%.
- DJI Agriculture
- DJI Agriculture is identified as the dominant player in China's agricultural drone sector, holding a significant 63.9% market share by revenue in 2024. This makes them a major rival to XAG Co. Ltd., the second-largest company in the sector.
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What Happened When
- 2012：
- XAG was founded.
- May 2022：
- XAG withdrew its first attempt to list on Shanghai’s STAR Market due to unfavorable capital market conditions.
- 2022-2024：
- XAG's overseas revenue grew at a compound annual rate of 59.4%.
- 2024：
- XAG posted its first annual profit after revenue surged 73.6% year-on-year to 1.07 billion yuan and net profit reached 70.4 million yuan.
- Fourth quarter of 2024：
- Average price-to-earnings ratio for Hong Kong mainboard listings was 12 times, according to Deloitte.
- First half of 2025：
- XAG's revenue grew 2.1% year-on-year to 745 million yuan, with net profit up 48.5% at 130 million yuan.
- First half of 2025：
- Revenue from XAG's smart farm IoT business increased 195.8% year-on-year to 27.8 million yuan.
- First half of 2025：
- XAG's overseas revenue rose 6.8% to 187 million yuan, accounting for 25.2% of total revenue.
- Third quarter of 2025：
- Average price-to-earnings ratio for Hong Kong mainboard listings climbed to 15 times.
- First three quarters of 2025：
- Hong Kong's IPO market fundraising estimated to top HK$180 billion.
- Sep. 25, 2025：
- XAG submitted its IPO application in Hong Kong, with Huatai International as the sole sponsor.
AI generated, for reference only
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