August 4, 2023 – Kunshan Yiyuan Medical Technology Co., Ltd. ("Yiyuan") today announced the successful closure of its Series B financing round exceeding 100 million yuan (approx. $14 million USD). The round was led by LongMarch Venture Capital, with participation from Jiangsu High-Tech Investment Group and continued support from existing investor Sunshine Insurance Capital. The newly secured funding will significantly accelerate Kunshan Yiyuan's R&D and commercialization of CT X-ray tubes.

The CT X-ray Tube: A Critical Component in Medical Imaging

As the core component of CT systems, the CT X-ray tube:

1.     Represents approximately 20% of a CT system's total bill of materials (BOM) cost

2.     Functions as a high-value consumable requiring replacement:every 2 years for standard hospital use and every 1-1.5 years in high-volume medical facilities

Current Market Challenges:

China faces significant import dependence, with:

1.Over 95% of CT tubes currently imported

2.The technology being listed by China's Science and Technology Daily as one of 35 "chokepoint" technologies restricting industrial development

National Strategic Priority:

The Chinese government has consistently prioritized CT X-ray tube development through three consecutive Five-Year Plans:

1.12th Five-Year Plan (2011-2015): Initial research encouragement

2.13th Five-Year Plan (2016-2020): Designated as key breakthrough technology

3.14th Five-Year Plan (2021-2025): Classified as high-end strategic product

This sustained policy support aims to encourage domestic R&D innovation,reduce reliance on foreign technology and develop competitive domestic alternatives.Kunshan Yiyuan Emerges as China's CT X-ray Tube Technology Leader Through Decade-Long Innovation

After 10 years of focused R&D, Kunshan Yiyuan has:

1. Achieved Complete Product Portfolio

• Developed full-range CT tube solutions (2.0MHU to 8.0MHU)

• Now covers 90%+ of domestic CT manufacturers' requirements

• Successfully overcame international technology restrictions

2. Pioneered Mass Production Capabilities

• First Chinese company to master industrial-scale manufacturing

• Deployed hundreds of tubes nationwide

• Product reliability comparable to global competitors

3. Set New Performance Benchmarks

A 5.3MHU flagship tube recently completed its service life with:

•1,191 days (3.3 years) of continuous operation

•2.09 million scan-seconds of flawless performance

•Image quality consistently meeting hospital diagnostic standards

Industry Significance:

• Represents the longest-lasting domestic CT X-ray tube ever produced

• Matches the performance ceiling of international products

• Foreign-made tubes exceeding 2M scan-seconds remain exceptionally rare

Chairman Zhang Lanyong's Statement on Kunshan Yiyuan's Next Development Phase "We sincerely appreciate our investors' recognition and support. With this capital empowerment, our company will enter a new stage of development—relentlessly driving industry leadership across mass production scaling, OEM client onboarding and cutting-edge technology R&D. Through disciplined execution and unwavering commitment, we will eliminate the most critical bottleneck in China's CT equipment localization journey, providing essential 'core' support for building China into a global medical technology powerhouse!"

Dr. Tan Wenlong, Senior Partner of LongMarch Venture Capital, Issues Investment Statement

"We are honored to participate in Kunshan Yiyuan's current funding round. LongMarch Venture Capital consistently aligns with national industrial policy, focusing our investments on hardcore technologies—particularly critical 'chokepoint' technologies vital to China's strategic development.

CT systems have become indispensable in modern medical diagnostics, yet while China has achieved domestic substitution for complete CT machines, the core component—the CT X-ray tube—remains dominated by foreign manufacturers.

These precision-engineered devices represent the pinnacle of medical equipment manufacturing, requiring ultra-high vacuum technology, extreme temperature resistance, high-speed rotational stability and exceptional longevity

After a decade of dedicated R&D, Kunshan Yiyuan has achieved mass production across the full 2.0-8.0MHU spectrum and matched international competitors' product lifespan benchmarks. We congratulate Kunshan Yiyuan on this successful funding round and look forward to accelerating complete localization of CT X-ray tubes—empowering China's CT systems with true Chinese 'core' technology!"*

Dr. Zuo Songlin, General Manager of Jiangsu High-Tech Investment Group, Issues Investment Commentary"As one of China's pioneering venture capital institutions, Jiangsu High-Tech Investment remains steadfast in our mission to fuel technological innovation and support the growth of science-driven SMEs. Since 2016, we have closely tracked the technological and industrialization of medical CT X-ray tubes.

Through years of relentless R&D and meticulous process optimization, Kunshan Yiyuan has achieved what few thought possible - developing products that rival global leaders in core performance metrics. This represents a landmark achievement in medical technology localization with profound national significance.

With multi-stakeholder support, we are confident Yiyuan will accelerate domestic substitution of medical CT X-ray tubes,establish undisputed leadership in China's CT component sector and deliver both clinical and economic value across the healthcare ecosystem

Their progress exemplifies how targeted investment in critical technologies can transform entire supply chains while serving the public good."

Mr. Shi Shenghao, Managing Partner of Sunshine Capital, Congratulates Kunshan Yiyuan on Successful Funding Round "We extend our congratulations to Kunshan Yiyuan on this new funding milestone! Sunshine Capital remains deeply committed to supporting domestic substitution of critical upstream technologies in medical imaging—particularly those 35 'chokepoint' technologies, including CT X-ray tubes, that constrain China's industrial advancement and remain prioritized in national Five-Year Plans.

Having led Yiyuan's exclusive funding round in September 2021, we've witnessed their extraordinary two-year transformation into China's sole multi-model CT X-ray tube mass producer.

As continuing investors, we reaffirm our conviction that Yiyuan will achieve new breakthroughs in CT X-ray tube commercialization, accelerate full supply chain localization and set global benchmarks for medical imaging components

Their progress exemplifies how strategic capital can transform national technological sovereignty in healthcare."*