XAG Bets on Smart Farm Tech as Drone Turf Gets Crowded
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Guangzhou Xaircraft Technology Co. Ltd. (XAG), a major player in China’s agricultural drone industry, is expanding into smart farming devices as it seeks growth beyond its core business ahead of a planned listing on the Hong Kong Stock Exchange.
On Nov. 5, the company unveiled a suite of farm Internet of Things (IoT) devices, including smart water valves and automated fertilization systems. The new offerings are part of XAG’s push to capitalize on intelligent water and fertilizer management — an area it began investing in 2022.
As of Oct. 31, 2025, more than 2,300 farms had adopted XAG’s intelligent systems, compared with just over 200 a year earlier, founder Peng Bin said at a press event. “It’s nearly a tenfold increase from last year,” he noted.
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- XAG, a Chinese agricultural drone firm, is expanding into smart farm IoT devices as it prepares for a Hong Kong IPO.
- Adoption of XAG's intelligent systems rose to over 2,300 farms by October 2025, and smart IoT business revenue grew 195.8% to 27.8 million yuan in H1 2025.
- Drones remain XAG’s main revenue source (89%), but competition, especially from DJI, is intensifying.
- Guangzhou Xaircraft Technology Co. Ltd.
- Guangzhou Xaircraft Technology Co. Ltd. (XAG) is a major player in China's agricultural drone industry, expanding into smart farming devices like IoT systems. They are pursuing a Hong Kong Stock Exchange listing. While drones still dominate revenue, their IoT business is rapidly growing, becoming their second-largest revenue stream. XAG faces intense competition in the drone market.
- SZ DJI Technology Co. Ltd.
- SZ DJI Technology Co. Ltd. (DJI) dominates China's agricultural drone market. In 2024, DJI Agriculture held a significant 43.1 percentage point lead in market share over XAG, according to a Frost & Sullivan report.
- Huace Navigation Technology Ltd.
- Huace Navigation Technology Ltd. is a competitor in the smart farming device market, specifically mentioned in the context of smart water valves. They are among the companies entering this field, which XAG estimates could have domestic demand for tens of millions of units.
- 2022：
- XAG began investing in intelligent water and fertilizer management.
- By 2024：
- XAG held a 20.8% share of China's agricultural drone market by revenue, trailing DJI Agriculture by 43.1 percentage points.
- First half of 2025：
- Revenue from XAG’s smart farm IoT business jumped 195.8% year-on-year to 27.8 million yuan.
- First half of 2025：
- Sales of XAG's unmanned ground vehicles brought in 1.9 million yuan, and revenue from autosteering kits for farm machinery dropped 52.2% year-on-year to 13.5 million yuan.
- By Oct. 31, 2025：
- Over 2,300 farms had adopted XAG’s intelligent systems, compared to just over 200 a year earlier.
- Sept. 25, 2025：
- XAG filed for its IPO, revealing financial and business details.
- Nov. 5, 2025：
- XAG unveiled a suite of farm Internet of Things (IoT) devices, including smart water valves and automated fertilization systems.
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