Kyushu Cloud Arrow Secures New Round of Funding: Focused on Developing Reusable Liquid Oxygen-Methane Rocket Engines

Release Time:

2021-01-21

**Qizhou Yunjian (Beijing) Space Technology Co., Ltd.** (hereinafter referred to as Qizhou Yunjian) has successfully completed a new round of financing. This funding round was led by Beijing Zhongguancun Development Qihang Innovation Investment Fund (hereinafter referred to as Qihang Investment), with participation from Yunhe Capital, Zhongguancun Development Group’s Jinzhongzi Fund, and Ourei Capital. Prior to this round, Qizhou Yunjian had already secured investments from institutions such as Runzhe Capital, Peakview Capital, and Yu Hui & Tai Industry Development Fund, as well as industry partners. Founded in 2017, Qizhou Yunjian is a national high-tech enterprise integrating the entire process of liquid rocket engine design, research and development, assembly, testing, and comprehensive flight support services. Guided by the core values of passion, innovation, professionalism, and efficiency, the company strategically focuses on rocket propulsion technology. Its flagship product—a liquid oxygen-methane engine designed to support rocket recovery and reuse—serves as the cornerstone of its business strategy. Additionally, the company has expanded into complementary product lines, including ultra-low-temperature, high-pressure pump and valve systems based on cryogenic liquid rocket engine technology, as well as combustion devices tailored for various industrial applications. Currently, Qizhou Yunjian has established a strategic operational framework comprising its R&D center in Beijing, along with a liquid rocket engine manufacturing and testing facility located in Bengbu, Anhui Province. **Qizhou Yunjian Liquid Oxygen-Methane Engine Series** Looking ahead, Qizhou Yunjian will continue to strengthen its talent pool, optimize and refine every stage of product development—from design and production to testing and final assembly—and significantly increase investment in R&D. The company will also enhance its technical management systems and quality control processes, ensuring robust and reliable support for customers delivering two key types of liquid rocket engines. **Panoramic View of the Liquid Oxygen-Methane Engine Hot Test Stand** As the lead investor in this round, **Zhongfa Qihang Investment** focuses its investments on cutting-edge, high-priority industries prioritized by Beijing, including next-generation information technology, biopharmaceuticals, aerospace technology, new energy materials, and intelligent manufacturing. Since its establishment, the fund has invested in numerous standout companies such as Yihuotong, Zhongshuzhihui, Aiparking, Angre Micro, Xinpai Electronics, Aotian Technology, and Gengyu Muxing. Based in the Zhongguancun National Independent Innovation Demonstration Zone, Qihang Investment leverages the extensive government-backed ecosystem and comprehensive platform provided by Zhongguancun Development Group to deliver strong support and value-added services to its portfolio companies. **Ma Jianping, Managing Partner at Zhongfa Qihang Investment**, commented: "Aerospace technology is a critical component of next-generation information technology and serves as essential infrastructure for the advancement of future industrial upgrades. The ongoing 'space-ground integration' initiative is driving rapid growth in small satellite development, rocket launches, and downstream applications. At present, there is a severe shortage in launch vehicle capacity, making propulsion technology the linchpin for rocket system performance. Qizhou Yunjian boasts a highly capable team that has swiftly established a technological edge in developing deep-thrust liquid oxygen-methane engines. Combined with the dynamic pace of China's commercial space market, the company has adopted a pragmatic and reliable product iteration strategy, effectively meeting the evolving needs of its customers. We are highly optimistic about their future prospects." **Zhang Bo, Founding Partner at Yunhe Capital**, added: "With the rapid expansion of the satellite internet industry, demand for rocket launch capabilities continues to rise sharply. As a core component of rocket systems, the rocket engine plays an increasingly vital role in meeting these growing demands. Qizhou Yunjian holds a leading position in the field of rocket engines, particularly with its innovative adoption of the liquid oxygen-methane propulsion system—a trend that aligns perfectly with global industry standards. Their advanced variable-thrust technology is already competitive on an international scale, positioning them for significant long-term growth. Yunhe Capital is dedicated to investing in high-quality, high-tech SMEs within strategic emerging industries, contributing actively to China’s scientific and technological progress. We remain committed to providing sustained support for Qizhou Yunjian’s continued success." **Ge Yuan, Managing Director at Ourei Capital**, emphasized: "China’s commercial space sector, as a critical national asset, was among the first industries to face the constraints of the Wassenaar Arrangement. However, thanks to decades of dedicated efforts, it has become one of the least dependent sectors on foreign technologies. With the nation’s rapid economic growth, demand for launch vehicles and engines is surging. From an investor’s perspective, opportunities arise primarily from the increasing openness of private enterprises to collaborate with state-owned entities, while market-oriented mechanisms enable leveraging the manufacturing and innovation capabilities of China’s world-class industrial base. Looking ahead, the widespread adoption of rocket recovery technologies and the resulting cost reductions will unlock massive untapped market potential. Although we may eventually confront intense international competition, China’s industrial foundation today stands far stronger than ever before. For the commercial space industry, this is not merely a burgeoning growth sector—it represents a crucial frontier for future technological exploration and even a tool for fostering a shared human destiny in the cosmos. Indeed, for commercial space ventures, the horizon stretches beyond the stars—there is no vast ocean, only endless celestial wonders." **Key Milestones Achieved by Qizhou Yunjian in 2020:** ● Successfully completed the research and development and mass production of two major engine models: the "Lingyun" 10-ton liquid oxygen-methane engine and the "Longyun" 70-ton liquid oxygen-methane engine. ● Completed construction and put into operation of the Anhui Intelligent Manufacturing Base and the Engine Assembly & Testing Center. Additionally, the company’s independently developed dual-station 100-ton cryogenic engine test stand provides robust support for rapid engine development iterations and timely product delivery. ● Secured contracts and letters of intent totaling nearly 100 million yuan from multiple commercial space enterprises, with orders covering complete engines as well as components and technology transfer products. These offerings have already been utilized by several domestic universities and military-industrial research institutes.

　　Jiuzhou Yunjian (Beijing) Space Technology Co., Ltd. (hereinafter referred to as Jiuzhou Yunjian) has completed a new round of financing. This round was led by Beijing Zhongguancun Development Qihang Innovation Investment Fund (hereinafter referred to as Qihang Investment), with participation from Yunhe Capital, Zhongguancun Development Group's Jinzhongzi Fund, and Ourei Capital. Prior to this financing round, Jiuzhou Yunjian had already secured investments from institutional investors and industry partners including Runzhe Capital, Peakview Capital, and Yu Hui & Tai Industry Development Fund.

　　Founded in 2017, Jiuzhou Yunjian is a national high-tech enterprise integrating liquid rocket engine design and development, assembly and testing, as well as comprehensive end-to-end flight support services. Guided by the core principles of passion, innovation, professionalism, and efficiency, the company strategically focuses on rocket propulsion technology. Its flagship product is a liquid oxygen-methane engine designed to facilitate rocket recovery and reuse. Additionally, the company has diversified its offerings into ultra-low-temperature, high-pressure pump and valve systems, as well as combustion devices tailored for various industrial applications—both developed based on cutting-edge cryogenic liquid rocket engine technology. Currently, the company has established a strategic presence comprising the Beijing R&D Center, along with the liquid rocket engine manufacturing and testing facilities located in Bengbu, Anhui Province.

　　Nine-Province Cloud Arrow Liquid Oxygen-Methane Engine Series

　　In the future, Kyushu Yunjian will continue to strengthen its talent development efforts, optimize and refine every stage of product design, production, testing, and final assembly/testing. We will also increase investment in product R&D, enhance technical status management, and reinforce quality control measures, ensuring solid and reliable support for our customers delivering two types of liquid rocket engine products!

　　Liquid Oxygen-Methane Engine Hot Test Stand Panoramic View

　　Zhongfa Qihang Investment serves as the lead investor in this round, with its investments primarily focused on Beijing's key high-end and cutting-edge industries, including next-generation information technology, biopharmaceuticals, aerospace technology, new energy and new materials, as well as intelligent manufacturing. Since its establishment, Zhongfa Qihang has successively invested in several prominent companies such as Yihuatong, Zhongshuzhuihui, Aiparking, Angruiwei, Xinpai Electronics, Aotian Technology, and Gengyu Muxing. Rooted in the Zhongguancun National Independent Innovation Demonstration Zone, Zhongfa Qihang leverages the extensive government backing and comprehensive ecosystem platform of Zhongguancun Development Group, which is dedicated to fostering innovation and entrepreneurship, thereby providing robust support and value-added services to its portfolio companies.

　　Ma Jianping, Managing Partner of Zhongfa Qihang Investment, stated:

　　Aerospace technology is a critical component of the next-generation information technology and serves as the essential infrastructure required for upgrading industries in the coming era. The "space-terrestrial integration" initiative has driven advancements in small satellite development, rocket launches, and downstream applications. Currently, the capacity of launch vehicles is severely insufficient to meet demand, making "power propulsion first" a top priority. A suitable engine product is undeniably crucial to the overall performance of a rocket system. JiuZhou YunJian is a highly capable team that has rapidly established a technological edge in developing a deep-thrust liquid oxygen-methane engine with variable thrust capabilities. Leveraging the dynamic pace of China's commercial space market, the company has adopted a pragmatic and reliable product iteration strategy, ensuring it can effectively meet the evolving needs of its customers. We are highly optimistic about this approach.

　　Zhang Bo, Founding Partner of Yunhe Capital, stated:

　　With the rapid development of the satellite internet industry, there is an increasing demand for enhanced rocket launch capabilities. In this context, the rocket engine—a core component of rocket systems—will play a pivotal role. JiuZhou YunJian boasts leading technological expertise in the field of rocket engines, particularly excelling in the cutting-edge liquid oxygen-methane propulsion technology, which aligns with the latest industry trends. Moreover, their innovative variable-thrust technology has reached a level comparable to that of international counterparts, showcasing significant growth potential. As a strategic investor focused on high-tech SMEs within emerging strategic industries, YunHe Capital is committed to supporting China's national scientific and technological advancement. We will continue to provide steadfast support for the ongoing development of JiuZhou YunJian.

　　Ge Yuan, Managing Director of Oure Capital, stated:

　　China's commercial aerospace industry, as a critical strategic asset of a major power, was among the first sectors to face the constraints of the Wassenaar Arrangement. Yet, thanks to decades of dedicated efforts by several generations, it has also become one of the least dependent on foreign technologies. With the nation's rapid economic growth, demand for launch vehicles and their engines has surged dramatically. From an investor's perspective, the primary opportunities lie in private enterprises unlocking previously untapped potential within the established institutional framework. Additionally, market-oriented mechanisms can leverage China's robust manufacturing capabilities and world-class innovation prowess. Looking ahead, as reusable technologies mature and costs plummet significantly, a vast and untapped market will soon be unlocked. While we may eventually confront intense international competition, China's industrial foundation today stands far stronger than ever before. Commercial aerospace is not merely a burgeoning industry; it represents a vital technological frontier that will shape humanity's future. Indeed, it could even serve as a crucial tool for humanity's shared journey into space—a testament to our collective pursuit of exploration and discovery. For commercial aerospace, the horizon stretches endlessly toward the stars—there are no oceans to cross, only boundless cosmic frontiers.

　　In 2020, Kyushu Cloud Arrow Achieved a Major Breakthrough

　　● Complete the research and development and production launch of two engine models: the "Lingyun" 10-ton-class liquid oxygen-methane engine and the "Longyun" 70-ton-class liquid oxygen-methane engine.

　　● The Anhui Intelligent Manufacturing Base and the Engine Complete Machine Testing Center have been completed and put into operation. Additionally, the self-built dual-station, 100-ton-class low-temperature engine test bench provides robust support for rapid iteration in engine development and ensures timely product delivery.

　　● The total value of complete machine purchase contracts and letters of intent signed with multiple commercial aerospace enterprises is nearly 100 million yuan; engine components and technology transfer products have already served numerous domestic universities as well as military-industrial research institutes.

Nine-province Cloud Arrow Liquid Oxygen-Methane Engine Hot Test Run

Great News! Zhou Wei, Co-founder of Jiuzhou Yunjian, has been awarded the "Individual Contribution Award in Science and Technology."

The thrust regulation system for the "Lingyun" liquid oxygen-methane rocket engine has successfully completed a semi-physical simulation test.