Promoting High-Quality Development of the Industrial Chain · Venture Capital Record | Mu Mu Xi Li: Committed to the Localization of High-End Optical Precision Instruments, Helping China Become a Strong Nation in Instruments

The innovation and strength of technology are a solid foundation for national development. In recent years, the United States and some Western countries have arbitrarily suppressed China's high-tech industry by leveraging their monopoly advantages in certain technologies, especially in some key core technologies, deliberately creating "bottleneck" problems. In 2020, the U.S. Department of Commerce issued the "Commercial Control List" (CCL), in which the clauses related to scientific instruments accounted for as much as 42.08%. Subsequently, the Chinese Academy of Sciences announced a list of 35 key technologies that will be focused on, including integrated circuits, optoelectronic displays, industrial software, and high-end precision scientific instruments. Scientific instruments are referred to as the "eyes of scientists to glimpse the original information data sources of the world". In contemporary scientific research, there is even a saying that "whoever has advanced instruments holds the initiative". In the industry, they belong to high-end manufacturing and strategic industries. However, to date, China has not made breakthrough progress in the research and manufacturing of high-end scientific instruments, with products highly dependent on foreign imports, with the proportion reaching as high as 90%. Recently, the National Development and Reform Commission released procurement data for scientific instruments over 2 million yuan from 2016 to 2019, showing that in the field of optical microscopes, domestic equipment procurement was 0%, and in the field of electron microscopes, the domestic equipment procurement rate was only 4.42%. Combined with the 2022 national R&D expenditure released by the National Bureau of Statistics, the Ministry of Science and Technology, and the Ministry of Finance, where one-quarter of the 3.09 trillion yuan was used for instrument and equipment procurement, such a huge market demand has a very small share occupied by domestic scientific instruments. The realization of the localization of high-end scientific instruments is imminent.

　Starting a business in hardcore fields and building a cognitive system

Nanjing Mumu Xili Technology Co., Ltd. (referred to as "Mumu Xili") was established in 2014, initially focusing on scientific research services. After various accumulations and sedimentations, it has taken the localization and independence of high-end optical precision measurement instruments as its mission, promoting the localization and refinement of scientific research instruments through product and application innovation and breakthroughs.

Before starting the business, founder Cui Yuanchi, through deepening his understanding of the scientific instrument market, three-dimensional rapid imaging technology, and the real needs of customers, saw the strong demand for high-end precision instruments in China at that time and the huge generational gap with international top levels. "Precision instruments are of great significance to the development of high-end manufacturing and technological innovation, belonging to top technology. Therefore, whether there is a complete technical solution and brand endorsement in the R&D implementation, whether there are mature high-precision test data and supporting services, etc., has become the key to breaking through the constraints of industrial development," Cui Yuanchi introduced.

After the establishment of Mumu Xili, the team based its strategy on the real demands of the market at that time and the actual situation of the company being in its initial stage. Starting from the recognition of the importance of brand and channels, it formulated a planned strategy of "service - solution - platformization - basic R&D", and guided by the path of "first building channels, exploring demand, integrating technology, and building systems", it first entered the market through "consulting services", connecting upstream manufacturers and downstream customers, solving the difficulties faced by the instrument market at that time, such as service difficulties, search difficulties, selection difficulties, comparison difficulties, operation difficulties, and purchasing difficulties, allowing the company to gain stable development support in the surging market.

With the continuous improvement of the supply chain system and the establishment of brand reputation, a large number of supplier resources, business cases, and platform solutions have been accumulated. Mumu Xili began to build its own channels, facing customers directly, and establishing a sustainable two-way information flow with them. As the supply chain capabilities, solution design, and technical support capabilities, as well as scientific research service capabilities gradually improved, Mumu Xili formed three major business sectors: "scientific research service business, high-end precision instrument research, production, and sales business, and SAAS business services", entering a period of rapid development.

　　Adhering to independent and controllable domestic production, accumulating professional capabilities

To do a good job, one must first sharpen their tools. The achievement of major original scientific and technological results is often preceded by breakthroughs in high-end scientific instruments. Especially in the field of experimental scientific research, the configuration of laboratory scientific instruments and equipment, the construction environment, and safety are directly positively correlated with the output of results.

Mumu Xili provides services for the overall solution design, process planning, site planning, instrument equipment delivery and operation and maintenance, laboratory management systems, and safety system layout for scientific research, research-level laboratories, and scientific research platforms, leveraging its rich project experience, professional technical capabilities, and advantages in supply chain resources and financial support, and gradually promotes Chinese instruments to universities and enterprises.

Today, Mumu Xili has become the largest enterprise in the R&D field of China's instrument and equipment industry in terms of channel scale, with 340,000 customers, serving over 60 key laboratories of national ministries, more than 210 university research institutions, and 200,000 scientific research users. It has established cooperative relationships with many double first-class discipline universities 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 entire industrial chain

In 2021, the "14th Five-Year Plan" and the 2035 long-term goals outline were released, emphasizing the importance of "strengthening the R&D and manufacturing of high-end scientific research instruments and equipment". General Secretary Xi Jinping emphasized on February 21, 2023, during the third collective study of the Political Bureau of the CPC Central Committee, the need to fight a tough battle for the localization of scientific instruments, equipment, operating systems, and basic software.

Cui Yuanchi believes the future has arrived. "We realized early on that the localization and refinement of scientific instruments is an irreversible trend, so when our business stabilizes and we complete the implementation of the platform strategy, we believe the time to develop our own products has 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 give Mumu Xili a significant latecomer advantage. Taking the localization and independence of high-end optical precision measurement and analysis instruments as its mission, based on three-dimensional rapid imaging and measurement technology routes, Mumu Xili has successively launched three product lines: laser interferometry measurement product line, ultra-high precision 3D measurement microscopes product line, and ultra-high-definition 3D observation microscopes product line. It has also welcomed the birth of breakthrough products such as the Kaimi KC-X1000 series laser spectral confocal microscope and the Kaimi KS-X1000 series 3D digital microscope.

The Kaimi KC series laser spectral confocal microscope is a nano-level detection instrument widely used for surface scanning and measurement of small structures and special materials, covering sample sizes from micrometers to meters. The measurement module uses spectral confocal technology to measure the height information of various materials non-contact and with high precision. Combined with the feedback-controlled XY scanning module and three-dimensional imaging algorithm, it obtains fine surface microstructures. In the feature-rich graphical post-processing module, image processing, three-dimensional analysis, contour analysis, roughness analysis, and more can be flexibly performed.

The KaiShimai KS-X1000 series 3D digital microscope is mainly used for observing, measuring, and analyzing surface micro-morphology. Unlike traditional optical microscopes, KaiShimai's self-developed "KM-DOFO" depth synthesis algorithm can achieve clear superimposed imaging over a larger depth of field range. The 100-nanometer linear scale feedback module combined with low-distortion optical lenses enables precise 3D size measurement. Additionally, the self-developed "KM-IMHI" image stitching algorithm can merge 2D stitching of 490 million pixels with 3D, combined with the self-developed image processing algorithm "KM-DSIMO", making the KS-X1000 capable of handling various challenging observation scenarios.

"Our product line focuses on five core areas: imaging, display, image computing, machine learning, and hardware, with imaging as the foundation of research and development," said Cui Yuanchi. Unlike traditional methods that rely on lens design optimization to improve imaging effects, MuMuXiLi utilizes computational optical imaging technology to achieve a larger field of view, longer distance, faster speed, higher precision, and lower cost by adjusting parameters such as the phase, spectrum, and diffraction signals of the light field.

In addition to independently developing software, MuMuXiLi also adheres to self-control in hardware. Imaging hardware, motion control, objective lens modules, processors, precision processing, and other hardware are gradually being replaced with domestic alternatives, aiming for a fully localized industrial chain.

With the completion of the "Moma No. 1" factory, MuMuXiLi's supply chain, ultra-precision processing technology, and precision assembly processes will see significant improvements, with the entire machine expected to achieve over 95% localization rate, becoming one of the few companies in China capable of providing localized services for the entire industrial chain of precision scientific instruments, breaking the monopoly of high-end scientific instrument import brands.

Today, MuMuXiLi's high-end optical precision measurement and analysis instruments mainly target high-end industries such as intelligent manufacturing, aerospace, shipbuilding, 3C, medical, semiconductor, photovoltaic, and new materials, providing reliable measurement and testing services.

　　Focusing on core business to build industry unicorns.

"Only those who seriously adhere to long-termism and possess strategic determination can focus on their main business, resist temptation, and do the difficult but right things." Cui Yuanchi leads MuMuXiLi to focus on its own track, achieving the localization of high-end scientific instruments with a professional and pragmatic spirit, and has developed into a leader in the field of scientific research services and high-end precision instrument industry in just a few years.

In August 2023, MuMuXiLi completed its Series A financing, with the Nanjing Venture Capital Group investing tens of millions of yuan to support its exploration of cutting-edge technology, ultra-precision processing technology, precision assembly processes, and supply chain construction, as well as enriching and improving its product line and product matrix.

Wang Shuli, general manager of the investment department of the venture capital group, stated: "The technical barriers of high-end scientific instruments are high, and the market space is large. Once there is a breakthrough in technology, it can form a better competitive advantage. After years of technical accumulation, MuMuXiLi has made breakthroughs in product performance, variety, and service. After the investment, we will also provide post-investment services in terms of resources and management. We believe that the company will adhere to independent and modular research and development, steadily advancing, and will surely contribute to the grand blueprint of domestic scientific instrument development."

It takes ten years to grow a tree and a hundred years to grow a forest. With the improvement of MuMuXiLi's layout in the high-end scientific instrument industry, it is possible that in the near future, the domestic precision instrument industry will have a unicorn-level enterprise, and at that time, China's independently created high-end precision instruments will surely have a place in international competition.

Source: Venture Capital Group

Reviewed by: Xue Yao

Published by: You Yi