(Yicai) Nov. 20 -- One of the founders of XAG has announced that the leading Chinese agricultural drone maker will turn a profit this year.

XAG will achieve profitability this year, mainly because the pressure from the complex economic environment pushed the company to focus on increasing revenues and cutting costs, Peng Bin told the media yesterday.

"Times have changed," said Peng, who is also XAG's chief executive officer. Companies unable to become profitable are easily eliminated, and those incurring continuous losses are unlikely to survive in the long run, he explained.

"In 2020, businesses aimed to raise funds and spend money to grow bigger and stronger," Peng pointed out. "But now, the focus has shifted to generating income and cutting expenses to maintain stable operations and control costs while boosting sales."

Over the past two years, XAG has logged positive operating profits that have supported its healthy development, so there is no urgent need for funding at the moment, according to Peng. However, he noted that the firm plans to go public in the future.

Founded in 2007, XAG is one of China's top suppliers of agricultural drones. By the end of last year, over 130,000 of its products were in operation across 63 countries and regions.

About 30 percent to 40 percent of XAG's revenue comes from overseas, as the company's global market share has nearly doubled this year alone, Peng said.

Peng believes that agricultural drones and related technologies are still in the early-to-mid stages of development, as there is still plenty of room for growth and innovation. "The dividends of agricultural drone technologies will extend for another two to three years, while those of smart agriculture could continue for five to 10 years."

XAG yesterday also held its annual conference. It launched several new smart agricultural products, including agricultural drones and autonomous driving systems for farm machinery. The P150 Pro, priced from CNY39,999 (USD5,525), is the latest version of XAG's flagship drone, equipped with spraying, spreading, transportation, and aerial surveying functions.

Editors: Tang Shihua, Futura Costaglione