(Yicai) Dec. 26 -- Midea Intelligent Lighting and Controls Technology, a unit of Chinese home appliances giant Midea Group that makes lighting and electrical goods, has pulled its second application for an initial public offering of shares.

Midea Intelligent Lighting withdrew its request to list in Shenzhen on Dec. 19 because of current market conditions, Jiang Peng, Midea’s board secretary, told Yicai yesterday. A future listing of the subsidiary will depend on the market environment and the unit’s own circumstances, he added.

Eight months have passed since Midea Intelligent Lighting last filed for an IPO, a listing that was expected to raise as much as CNY506 million (USD71 million). The Foshan-based firm applied in June 2021 before withdrawing a year later.

The number of listed firms in China’s light-emitting diode lighting industry has risen in the past two years, according to an industry observer. Midea Intelligent Lighting's IPO withdrawal is likely due to the gap between the company's valuation multiples and expectations for the economic environment, the person said.

Midea owns 57 percent of Midea Intelligent Lighting and founder He Xiangjian is its actual controller. 

The unit’s net profit rose 8.3 percent to CNY83.3 million (USD11.7 million) last year, while revenue fell 1.6 percent to CNY910.6 million, according to its IPO prospectus. Sales to one of its major clients, affiliate Midea Real Estate Holding, accounted for 14 percent of the total.

Midea is still pushing listings for other businesses. Annto Logistics, a supply chain management firm it controls, recently registered for pre-listing tutoring with the securities regulator. 

Editors: Dou Shicong, Martin Kadiev