Promoting High-Quality Development of the Industrial Chain · Venture Capital Record | Mumu Xili: Committed to the Localized Independence of High-End Optical Precision Instruments to Help China Become a Power in Instruments
December 8, 2023
echnological Innovation and Strength: The Solid Foundation of National Development.Innovation and strength in science and technology form a solid foundation for a country’s development. In recent years, the United States and some Western countries, leveraging their monopoly advantages in certain technologies, have arbitrarily suppressed China’s high-tech industry. Particularly in key core technologies, they have deliberately created "chokepoint" bottlenecks. In 2020, the U.S. Department of Commerce issued the Commerce Control List (CCL), in which provisions related to scientific and technological instruments accounted for as high as 42.08%. Later, the Chinese Academy of Sciences (CAS) released a list of 35 "chokepoint" key technologies to be tackled with concentrated efforts, with integrated circuits, optoelectronic displays, industrial software, and high-end precision scientific instruments prominently included.
Scientific and technological instruments are known as the "eyes through which scientists observe the original source of world information and data." Even in contemporary scientific research, there is a saying that "whoever owns advanced instruments holds the initiative." In the industrial sector, such instruments belong to high-end manufacturing and strategic industries. However, to date, China has yet to achieve breakthroughs in the R&D and manufacturing of high-end scientific instruments. Not only are such products highly dependent on imports, but the import ratio even reaches 90%.
Not long ago, the National Development and Reform Commission (NDRC) released data on the procurement of domestic scientific instruments worth over RMB 2 million from 2016 to 2019. The statistics showed that in the field of optical microscopes, the procurement rate of domestic equipment was 0%, while in the field of electron microscopes, the procurement rate of domestic equipment was only 4.42%. Combined with the national R&D expenditure of RMB 3.09 trillion in 2022 released jointly by the National Bureau of Statistics, the Ministry of Science and Technology, and the Ministry of Finance—of which a quarter was used for instrument procurement—domestic scientific instruments account for an extremely small share of this huge market demand. Realizing the localization of high-end scientific instruments is therefore extremely urgent.

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Starting a Business in a Hardcore Field and Building a Cognitive System

Founded in 2014, Nanjing Mumu Xili Technology Co., Ltd. (hereinafter referred to as "Mumu Xili") initially focused on scientific research services as its core business. After years of accumulation and precipitation, it has taken the localization and independent development of high-end optical precision measurement instruments as its mission, and promoted the localization and refinement of scientific research instruments through innovation and breakthroughs in products and applications.

Before starting his business, Cui Yuanchi, the founder, gained in-depth insights into the scientific instrument market, 3D rapid imaging technology, and customers’ actual needs through his work. He noticed the strong demand for high-end precision instruments in China and the huge generational gap between China and the world’s top level. "Precision instruments are of great significance to the development of high-end manufacturing and technological innovation, and belong to cutting-edge technology. Therefore, in the process of R&D and implementation, whether there are complete technical solutions and brand endorsements, as well as mature high-precision test data and supporting services, have become the key to breaking through the constraints of industrial development," Cui Yuanchi explained.

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After its establishment, based on the actual market demands at that time and the fact that the company was in its initial stage, Mumu Xili’s team, starting from the understanding of the importance of brands and channels, formulated a planned strategy of "Service → Solution → Platformization → Basic R&D," guided by the path of "first building channels, exploring demand, integrating technology, and constructing a system." It first entered the market through "consulting services," connecting upstream manufacturers and downstream customers to solve problems in the instrument market at that time, such as difficulties in service access, product search, model selection, comparison, operation, and purchase. This provided the company with support for steady development in the fierce market competition.
As the supply chain system became increasingly improved, brand reputation was established, and a large number of supplier resources, business cases, and platform solutions were accumulated, Mumu Xili began to build its own channels to face customers directly and establish a sustainable two-way information flow with them. With the gradual improvement of its supply chain capabilities, solution design and technical support capabilities, and scientific research service capabilities, Mumu Xili formed three major business segments: "scientific research service business, R&D, production and sales business of high-end precision instruments, and SAAS service business," entering a period of rapid development.

Adhering to Independent and Controllable Localization and Cultivating Professional Capabilities

"To do a good job, one must first sharpen one’s tools." The achievement of major original scientific and technological achievements is often preceded by breakthroughs in high-end scientific and technological instruments. Especially in the field of experimental scientific research, the configuration of scientific research instruments and equipment in laboratories, as well as the construction of environment and safety, are directly positively correlated with the output of achievements.
With rich project experience, professional technical capabilities, and advantages in supply chain resources and capital support, Mumu Xili provides services for the overall solution design, process planning, site planning, instrument and equipment delivery and operation and maintenance, laboratory management system and safety system layout of scientific research, research-level laboratories, and scientific research platforms. During the service process, it has gradually promoted domestic instruments into universities and enterprises.

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Today, Mumu Xili has become the enterprise with the largest channel scale in the R&D field of China’s instrument and equipment industry. It has 340,000 customers, serving more than 60 key laboratories under national ministries and commissions, over 210 university scientific research institutions, and 200,000 scientific research users. It has established cooperative relationships with many first-class universities with double first-class disciplines, such as Tsinghua University, Peking University, Ocean University of China, China University of Petroleum, Shanghai Jiao Tong University, Tongji University, Fudan University, and Huazhong University of Science and Technology.

Breaking the Monopoly of Precision Instruments and Laying Out the Whole Industrial Chain

In 2021, the "14th Five-Year Plan" and the Long-Range Objectives Through the Year 2035 were released, and "strengthening the R&D and manufacturing of high-end scientific research instruments and equipment" was elevated to an important position. On February 21, 2023, General Secretary Xi Jinping emphasized the need to fight a tough battle for the localization of scientific and technological instruments and equipment, operating systems, and basic software during the third collective study of the Political Bureau of the CPC Central Committee.
Cui Yuanchi believes that the future is already here. "We realized very early that the localization and refinement reform of scientific and technological instruments is an irreversible trend. Therefore, when our business became stable and we completed the implementation of the platformization strategy, we believed that the time to develop independent products had come."
Although it is a latecomer, the support of macro policies, the team’s years of experience in the optical instrument industry, and the accumulation of market data have given Mumu Xili significant latecomer advantages. Taking the localization and independent development of high-end optical precision measurement and analysis instruments as its mission, and based on the technical route of 3D rapid imaging and measurement, Mumu Xili has successively launched three product lines: laser interferometry product line, ultra-high-precision 3D measurement microscope product line, and ultra-high-definition 3D observation microscope product line. It has also launched breakthrough products such as the Kaimai KC-X1000 series laser spectral confocal microscope and the Kaimai KS-X1000 series 3D digital microscope.

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The Kaimai KC series laser spectral confocal microscope is a nanoscale testing instrument, widely used in the surface scanning and measurement of microstructures and special materials, with a sample size range from micrometers to meters. The measurement module adopts spectral confocal technology, which can measure the height information of various materials in a non-contact and high-precision manner. Combined with the feedback-controlled XY scanning module and 3D imaging algorithm, it obtains fine surface microstructures. In the feature-rich post-processing module, image processing, 3D analysis, contour analysis, roughness analysis, etc., can be flexibly carried out.
The Kaimai KS-X1000 series 3D digital microscope is mainly used for the observation, measurement, and analysis of surface microtopography. Different from traditional optical microscopes, Kaimai’s self-developed "KM-DOFO" depth synthesis algorithm can realize clear superimposed imaging within a larger depth of field. The 100-nanometer linear scale feedback module, combined with low-distortion optical lenses, enables precise 3D dimension measurement. The self-developed "KM-IMHI" image stitching algorithm can integrate 490-megapixel 2D stitching with 3D fusion. Combined with the self-developed image processing algorithm "KM-DSIMO," the KS-X1000 is fully capable of coping with various challenging observation scenarios.

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"The core of our product line consists of five parts: imaging, display, image computing, machine learning, and hardware, among which imaging is the foundation of R&D," Cui Yuanchi introduced. Unlike the traditional method that relies on lens design optimization to improve imaging effects, Mumu Xili uses computational optical imaging technology to adjust parameters such as the phase, spectrum, and diffraction signal of the light field, achieving larger imaging field of view, longer distance, faster speed, higher precision, and lower cost.
In addition to independent software R&D, Mumu Xili also adheres to independent and controllable development in hardware. Hardware such as imaging hardware, motion control, objective lens modules, processors, precision processing, and processes are gradually being replaced by domestic alternatives, and even the entire industrial chain is moving towards independent development.

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With the completion of the construction of the "Moma No. 1" factory, Mumu Xili’s full-process capabilities in supply chain, ultra-precision processing technology, and precision assembly processes will be significantly improved. The localization rate of the whole machine is expected to reach more than 95%, making it one of the few domestic companies capable of providing localized services for the entire industrial chain of precision scientific instruments and breaking the monopoly of imported brands in high-end scientific instruments.
Today, Mumu Xili’s high-end optical precision measurement and analysis instruments mainly serve high-end industries such as intelligent manufacturing, aerospace, ships and warships, 3C, medical care, semiconductors, photovoltaics, and new materials, providing reliable measurement and testing services.

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Focusing on Core Business to Build Barriers and Becoming an Industry Unicorn

"Only those who adhere to long-termism and have strategic determination can focus on their core business, resist temptations, and do difficult but correct things." Led by Cui Yuanchi, Mumu Xili has focused on its own track, and with a professional and pragmatic spirit, has realized the localization of high-end scientific research instruments. In just a few years, it has developed into a leader in the scientific research service field and the high-end precision instrument industry.
In August 2023, Mumu Xili completed its Series A financing, with Nanjing Venture Capital Group investing tens of millions of yuan to help it achieve "cutting-edge technology exploration, ultra-precision processing technology, precision assembly processes, and supply chain construction," as well as enrich and improve its product lines and product matrix.
Wang Shuli, General Manager of the First Investment Department of Nanjing Venture Capital Group, said: "High-end scientific and technological instruments have high technical barriers and huge market space. Once a technological breakthrough is made, better competitive advantages can be formed. After years of technical accumulation, Mumu Xili has made breakthroughs in product performance, types, and services. After the investment, we will also provide post-investment services in resources and management. We believe that if the company adheres to independent and modular R&D and makes steady progress, it will surely contribute to the grand blueprint of domestic scientific and technological instrument development."
"It takes ten years to grow a tree, but a hundred years to cultivate a forest." With the improvement of Mumu Xili’s layout in the entire industrial chain of high-end scientific instruments, it is likely that in the near future, the domestic precision instrument industry will have a unicorn-level enterprise. By then, high-end precision instruments independently created by China will surely occupy a place in international competition.

Source: Venture Capital Group
Review: Xue Yao
Release: You Yi