China-based rental proptech company Mofang has reapplied to list on the Hong Kong stock exchange, Mingtiandi reports. It had applied for an IPO last year, but that application lapsed last month.

Mofang, which is backed by private equity company Warburg Pincus, is pursuing a public listing under the name Cubic City Service Apartment Group Holdings Ltd.

In 2009, Mofang launched its flagship brand, rental marketplace, which targets white-collar workers. It subsequently launched a rental service for blue-collar workers in 2016.

Mofang’s business model is asset light — it doesn’t own apartments directly. It manages properties that it has leased en bloc — its main source of revenue —  and franchised apartments under both its own brand and third-party brands.

As of the end of last year, Mofang had 76,245 apartments across 388 locations in 25 cities under management.

Last year, the company earned RMB1.7 billion ($246 million U.S.) in revenue, up 16.5% year on year, in spite of disruption arising from Covid-19 restrictions. It earned a net profit of RMB302 million in 2021, as opposed to a net loss of RMB230 million during the previous year.

“We expect our fast growth to also benefit from our industry’s strong potential. China’s rental apartment industry grew significantly to RMB1.7 trillion by the end of 2022 and is expected to expand to RMB2.6 trillion by the end of 2027, representing a CAGR [compound annual growth rate] of 8.7%, according to Frost & Sullivan,” it said.

“We plan to establish a digitalized supply chain management system based on cutting-edge internet technologies, which optimizes our supply chain efficiency and empowers our franchisees and entrusting parties.”

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