(Yicai Global) July 28 -- Midea Intelligent Lighting and Controls Technology, a unit of Chinese home appliances giant Midea Group, has terminated its application for an initial public offering on Shenzhen’s Nasdaq-style ChiNext board.

Midea Lighting withdrew its listing application documents on July 21, the Shenzhen Stock Exchange announced late yesterday. The bourse had reviewed the documents after accepting the company’s IPO filing on June 29 last year.

Midea Lighting’s business is highly dependent on its parent company’s real estate and sales channels, saying earlier this month that 32 percent to 66 percent of its revenue comes from real estate companies. As China’s property market remains sluggish, its business has likely suffered.

In addition, Midea Lighting’s market share may be less than 0.5 percent, according to Yicai Global calculations based on data from the Huajing Industry Research Institute. So, the company does not have much bargaining power with e-commerce platforms such as JD.Com.

And the firm’s gross margin was just 27.72 percent last year, while those of rivals Opple Lighting and Ningbo Banmen Electric reached 32.43 percent and 36.85 percent, respectively.

Midea Lighting is a high-tech enterprise focused on the research, development, and production of lighting products. Midea owns 50 percent of the company directly and controls another 6.7 percent through a wholly owned subsidiary. He Xiangjian, the founder of Midea, is the lighting firm’s actual controller.

Editors: Shi Yi, Peter Thomas