(Yicai) Aug. 27 -- Several tenants leasing flats from Mofang Apartment in China's southern Shenzhen said their electricity was cut off after the rental company failed to pay the rent due to landlords for many months.

An apartment in Longgang district experienced multiple power cuts since last month because Mofang owes the landlord six months of rent, the tenant told Yicai. One of the firm's V Ke Youth flats in Bao'an district was left in the dark several times this month due to five months of unpaid rent to the property owner, its tenant said.

At least four Mofang and V Ke Youth apartments in Shenzhen have rent arrears with landlords, Yicai learned. Some property owners have cut ties with the company and taken back their flats due to months of unpaid rent.

Some apartments have contractual disputes with the landlords, which is why payments have not been made as agreed, a Mofang employee said to Yicai.

Mofang is one of the earliest rental property operators in China to establish a presence in the long-term lease market.

In September 2022, Mofang filed for an initial public offering in Hong Kong, becoming the third such Chinese firm to apply for listing. After its initial application expired, the Shanghai-based company tried filing again in April last year, but to the same result.

Mofang managed 76,000 units in 25 Chinese cities as of the end of 2022, including around 36,000 in Beijing and Shanghai and 14,000 in Guangzhou and Shenzhen, according to its latest prospectus. It also handled 388 stores.

Mofang reported a net loss of CNY230 million (USD32.3 million) in 2020 and a net profit of CNY302 million in 2021 before swinging back into the red with a net loss of CNY247 million in 2022, mainly due to the impact of the Covid-19 pandemic.

Editor: Martin Kadiev