Shein registers quarterly loss ahead of Hong Kong IPO
Shein, which lists promotional brochures for Hong Kong’s online fast-fashion retailers, suffered losses in the first quarter of this year as its sales took a hit as the United States scrapped its “de minimis” duty-free policy.
The US$99 million ($142 million) net loss is mentioned in a filing that forms the basis of investor roadshows and official book-building for its much-anticipated global offering.
The Singapore-based company, which was founded in China, did not disclose the size of the Hong Kong share sale, the offering price, the listing schedule or expected proceeds from the IPO in the draft prospectus.
Shein received approval from the China Securities Regulatory Commission (CSRC) to list in Hong Kong on July 10, paving the way for the listing after unsuccessful attempts in New York and London.
Financial details released for the first time give investors a sharper look at the pressure Shein faces as it seeks new funding due to high costs, slow growth and increased regulatory scrutiny in key markets.
Shein noted that the removal of the de minimis exemption since May 2025 has had a “negative impact” on sales and overall growth in the U.S. and contributed to increased spending.
The de minimis rule allowed packages valued under $800 to enter the United States without import duties.
Shein said Chinese-origin products sold by him or through his marketplace and shipped to the U.S. are now subject to duty rates ranging from 10 percent to 87.5 percent.
The loss in the first quarter was also driven by a $328 million fair value loss on convertible redeemable preferred stock.
These are investor shares that can later convert into ordinary shares, and their accounting values may change before they are listed on the stock exchange.
In the same quarter of the previous year, its net income was 395 million dollars.
Revenue rose 1.1 percent, from $8.95 billion to $9.05 billion.
The filing listed founder Sky Yangtian Xu as president and chief executive officer.
Donald Tang, who served as chief executive officer, was not among Shein’s directors or senior executives.
The filing revealed Goldman Sachs, Morgan Stanley and JPMorgan as co-sponsors of the listing.
