The second-stage rocket has completed final assembly and testing; "Yushi Space" completes a Pre-A round of financing exceeding 100 million yuan, bringing its total financing this year to nearly 300 million yuan [$57M] | 36Kr Exclusive
36Kr has learned that Beijing Yushi Space Aerospace Technology Co., Ltd. (hereinafter referred to as "Yushi Space"), a rocket R&D and manufacturer, announced the completion of a Pre-A round of financing exceeding 100 million yuan. This round of financing was led by Cornerstone Capital, with Xingxiang Capital and Tuofeng Venture Capital participating, and existing shareholder Yinying Capital and others continuing to invest. The funds raised will be used for the R&D of the maiden flight rocket and the construction of the Zhuzhou production base.
In March and May of this year, 36Kr reported on Yushi Space's completion of its angel round and angel+ round of financing. Including this round, Yushi Space has raised nearly 300 million yuan in total within a year. Previous investors include Lingge Venture Capital, Yingtan Aerospace, Tsinghua Alumni Seed Fund, Qiancheng Capital, and Huacang Capital.
Founded in 2024, Yushi Space focuses on the research and development and manufacturing of high-capacity, low-cost, and rapidly reusable liquid rockets. It is currently the only team in China using a stainless steel rocket with a "chopstick" capture arm recovery system.
Yushi Space's flagship product is the AS-1 rocket. The AS-1 is a low-cost, two-stage, medium-sized liquid rocket, employing a stainless steel structure, liquid oxygen and methane propulsion, and a capture arm recovery and reuse system. It primarily targets the low-to-medium Earth orbit payload launch market.
The AS-1 is approximately 70 meters long, weighs about 570 tons at liftoff, and has a diameter of 4.2 meters. Its single-launch capacity exceeds 15 tons, and its recovery capacity exceeds 10 tons. The single-launch cost can be as low as 20,000 RMB/kg, and the recovery launch price is 10,000 RMB/kg, lower than the market average. According to Dr. Tang Wen, founder and CEO of Yushi Space, the AS-1 second-stage rocket has successfully completed final assembly and testing. The first-flight second-stage rocket has arrived at the test site and officially entered the propulsion system testing phase.
Over the past six months, Yushi Space's team has expanded to over 120 people. The company has completed the construction and put into operation its "one center and two bases" structure. The "one center" is centered around the Beijing R&D team, conducting rocket development and rocket capture and recovery technology research. The "two bases" are the Hebei production and testing base and the Hunan production, R&D, assembly, and testing base. These two bases will undertake the production, assembly, and testing of the maiden flight rocket, as well as the development and testing of a new generation of stainless steel rockets.
Among them, Yushi Space's reusable stainless steel liquid launch vehicle R&D base has been established in Zhuzhou, Hunan, and construction has begun. According to reports, the base is divided into two phases, covering a total area of approximately 54,000 square meters, with a total investment of approximately 1.5 billion yuan. Upon completion, it will have a production capacity of 8 rockets per year, with an estimated annual output value of 2 billion yuan, fully covering the production and assembly of the AS-1 rocket. According to the plan, the first phase of the Zhuzhou rocket R&D base will be delivered and put into use in Q2 of next year.
As one of the earliest teams in China to use stainless steel rocket bodies, Yushi Space has independently developed its stainless steel rocket body supply chain system from scratch, and currently masters the entire process, including stainless steel raw material production and tooling. Compared with traditional aluminum alloy rocket bodies, stainless steel rocket bodies have significant advantages in both cost and production efficiency. According to Zhu Xinwen, the founder, the cost of Yushi Space's self-developed stainless steel rocket bodies is currently only one-tenth that of aluminum alloy rocket bodies, while production efficiency is several times higher, with the fastest delivery time being only one month. In the founding team's plan, adhering to an open mindset, in addition to meeting its own needs, Yushi Space will also open its stainless steel rocket body production capacity to external parties in the future.
Since the beginning of this year, Yushi Space has successively completed the delivery and assembly of the second-stage common-base tank and the assembly and testing of the second-stage rocket. Next, it will focus on two core tasks: the static ignition test of the second-stage rocket for the maiden flight and the ground test of the full-size capture arm prototype. Tang Wen revealed, "Next year, SpaceX plans to complete the final assembly and testing of the first-stage rocket's first flight and the test firing of the first-stage rocket's propulsion system. We strive to build three rockets by the end of 2026 and complete the first flight status verification."
Tang Wen told 36Kr, "The continuous iteration of SpaceX's Starship and the successful maiden flight of LandSpace's Zhuque-3 rocket have proven the advantages of stainless steel rockets over traditional aluminum alloy rockets in terms of production efficiency and design flexibility. Relying on the excellent mechanical properties of stainless steel and the low-cost advantages of China's industrialized manufacturing, commercial rocket companies are breaking through production capacity bottlenecks. In the future, commercial rocket companies choosing the 'stainless steel + liquid oxygen/methane solution' will have an annual launch capacity of more than 30 rockets, effectively alleviating the launch constraints of the satellite internet industry chain."
Currently, YuShi Space's fourth round of financing is accelerating.
The Cornerstone Capital investment team stated: The maturity of reusable rocket technology is the core prerequisite for the commercialization feasibility of the commercial aerospace industry. Stainless steel + liquid oxygen/methane is SpaceX's ultimate roadmap. This field is currently in a critical breakthrough phase, moving from zero to one. A mature and stable commercial application paradigm has yet to be established, leaving a scarce window of opportunity for startups. Although startups have relatively limited resources, their lack of historical baggage allows them to proceed with a lighter load and quickly learn from mistakes. Breakthroughs in this entirely new technology require groundbreaking thinking, the courage to face failure, and a flexible and efficient product iteration mechanism—precisely the valuable qualities I see in the YuShi Space team.
Xue Zhen, Chief Investment Officer of Xingxiang Capital, stated: "As a game-changer in China's commercial aerospace industry, YuShi Space, with its unique 'stainless steel rocket body + chopstick-shaped robotic arm recovery' technology, has reduced launch costs to 20,000 yuan/kg, allowing Chinese commercial rockets to rival international top-level standards thanks to Hunan's manufacturing strength. Its Zhuzhou rocket assembly base and Changsha launch tower recovery center have already begun construction, aiming to create a closed-loop ecosystem of 'Hunan satellites, Hunan rockets, and Hunan launches,' driving industrial agglomeration in the Changsha-Zhuzhou-Xiangtan region." Based on Hunan's three major advantages, it is recommended to build a spatiotemporal information industry community. It is hoped that under the leadership of Dr. Tang Wen, Yushi Space will play a leading role in the industry chain with the spirit of Hunan, deeply integrate into the local industrial ecosystem, and help Hunan's commercial aerospace industry achieve high-quality development.
