Yushi Space Raises ¥200M for Reusable Rocket Tech

Yushi Space, a Beijing-based innovator in reusable launch vehicle technology, has successfully concluded a RMB 200 million (approximately $27 million) Pre-A+ funding initiative. The significant capital infusion was spearheaded by prominent venture capital firms Hillhouse Venture Capital and Xingxiang Capital. Further bolstering the round were contributions from Minghui Zhiyuan, the family office associated with industrial automation leader Huichuan Technology, alongside existing backers Qiancheng Capital, Tuofeng Capital, Zhisheng Ruiying, and Yunqi Capital.

This latest financial milestone propels Yushi Space's total raised capital to nearly RMB 500 million (approximately $68 million). The company has achieved this impressive fundraising total across multiple stages—angel, angel+, Pre-A, and now Pre-A+—within a remarkably short span of less than two years since its inception.

At the heart of Yushi Space's development is the AS-1 rocket, a substantial reusable liquid-propellant vehicle engineered with stainless steel construction and a liquid oxygen-methane engine system. The AS-1 boasts an impressive scale, standing approximately 70 meters tall with a takeoff weight of 570 tons and a 4.2-meter diameter. Its payload capacity is designed for 15.7 tons to low Earth orbit in an expendable configuration, or 10 tons when operating in its reusable mode. Notably, the rocket incorporates a sophisticated capture system, reminiscent of SpaceX's approach, for recovery.

The strategic advantage of Yushi Space's stainless steel design lies in its potential to drastically reduce manufacturing costs, estimated at one-tenth that of traditional aluminum-alloy structures. This approach also accelerates production timelines, with the company reporting the fastest component delivery in just one month. The company's ambitious cost targets aim to bring expendable launch expenses down to 20,000 yuan per kilogram and reusable launches to an even more competitive 10,000 yuan per kilogram, with a target reuse cycle of a mere 10 days. This focus on cost-efficiency and rapid turnaround is critical in the increasingly competitive commercial space launch market, which is projected for substantial growth in the coming decade.

Founded by visionary engineer Dr. Tang Wen, who serves as CEO, and co-founder Zhu Xinwen, Yushi Space has experienced rapid organizational growth, now employing over 170 individuals, with a strong emphasis on R&D, where more than 70% of the workforce is engaged. The company has ambitious plans to scale its team to over 300 employees by the end of the year. Demonstrating its operational progress, Yushi Space successfully delivered its inaugural AS-1 rocket prototype within 20 months of its founding in January 2026.

The newly acquired funds are earmarked for critical operational advancements. These include the final assembly and rigorous testing of the AS-1 rocket, validation of its recovery technologies, expansion of manufacturing capabilities at its 54,000-square-meter facility in Zhuzhou, which is designed for an annual output of 8 rockets, and continued recruitment to support its expanding mission.