After privatization, how can Monster Charging use shareholders' industrial resources to open up new space for growth?

Since this year, Monster Charging shareholder Xin Chen Capital has developed an intensive layout around cultural tourism and entertainment tracks. The latest news is that on August 17, Xinchen Capital and Alibaba Group reached a transaction agreement to acquire Lingxi Mutual Entertainment. Alibaba sold all of its shares in Lingxi Mutual Entertainment, and Xinchen Capital became the latter's new shareholder. Prior to that, a subsidiary of Xinchen Capital had completed the acquisition of 100% of the shares in the two major cultural tourism projects “Only Henan Drama Fantasy City” and “Zhengzhou Film Town”. Earlier, in April of this year, Xinchen Capital completed a privatization transaction for Monster Charging, a leading domestic shared charging company.

Although the above three deals are on different tracks, according to Zhitong Finance, this layout leaves room for imagination for subsequent industrial collaboration.

At the macro level, domestic service consumption has continued to recover since this year. The cultural tourism market has performed particularly well. The number of domestic travelers continued to grow in the first half of the year. Large-scale drama and entertainment projects and film and television IP-themed cultural tourism destinations have become structural highlights, and the value of physical scenarios with continuous customer acquisition capacity and high consumer stickiness has been re-examined. “Only Henan Drama Fantasy” acquired by Xinchen Capital is one of the largest drama settlements in China; the Zhengzhou Film Town uses film and television IP as the core to form a complex business format for immersive experiences and food and beverage consumption. Both assets have the characteristics of high passenger flow density, long stay time, and concentration of young consumers. These characteristics are compatible with high-frequency usage scenarios for shared charging services.

As far as the shared power bank industry is concerned, the entire market has now moved from an early stage of scale expansion to a refined inventory operation cycle. The competitive focus of leading companies is shifting from “horse racing” to deepening scenario cultivation and improving operational efficiency. The ability to obtain high-quality scenario resources directly determines the profit quality and growth ceiling of the enterprise. Previously, Monster Charging completed a nationwide contract with McDonald's in March of this year, locking in the benchmark scenario for leading domestic restaurant chains and further consolidating its position advantage in the standardized business scenario. Meanwhile, the cultural and cultural tourism assets newly acquired by Xinchen Capital represent another type of scenario with high passenger flow, high time, and high willingness to spend. Theoretically, it can provide potential space for shared charging services to be extended to such spaces. At the same time, the mature game IP and stable online user traffic under Lingxi Mutual Entertainment also provided experimental soil for Monster Charging to explore “IP+ Scene+ Service” business format innovation.

From the perspective of capital collaboration, as the core private equity merger and acquisition platform under CITIC Capital, Xinchen Capital has managed capital of more than 10 billion US dollars. In the past, it has managed leading integrated projects in various industries such as McDonald's China and FanZhong Media, and has accumulated cross-industry resource allocation and post-investment management capabilities. Its business layout covers the fields of consumption, technology, medical care, and corporate services, and has built a diversified industrial system. As an important platform for its consumer services, Monster Charging will benefit from shareholders' industrial resource empowerment in the future, which is also worth continuing to track.