Shein swung to a $99 million net loss in the first quarter of this year, the draft Hong Kong listing prospectus of the online fast-fashion retailer showed, as its sales took a hit from the Trump administration’s removal of the “de minimis” duty-free policy.
The filing lays the groundwork for investor roadshows and official bookbuilding of its much-awaited global offering.
The Singapore-headquartered company, which was founded in China, did not disclose the size of the Hong Kong share sale, the offer price, the listing timetable or expected proceeds from the offering in the draft prospectus.
Shein won approval from the China Securities Regulatory Commission (CSRC) for its Hong Kong listing on July 10, clearing the way for a listing after failed attempts in New York and London.
The financial details, revealed for the first time, give investors a sharper look at the pressure facing Shein as it seeks new funds, amid higher costs, slower growth and growing regulatory scrutiny in key markets.
Since May 2025, the removal of the de minimis exemption has had an “adverse impact” on sales in the US and overall growth, and has contributed to an increase in expenses, Shein said in the filing.
The de minimis rule had allowed packages worth less than $800 to enter the U.S. without import duties. Shein said China-origin products sold by it or through its marketplace and shipped to the U.S. are now subject to tax rates ranging from 10% to 87.5%.
Revenue reaches $9 billion
The first-quarter loss was also caused by $328 million in fair-value losses on convertible redeemable preferred shares. These are investor shares that can later convert into ordinary shares, and their accounting value can change before a listing.
It posted net income of $395 million in the same quarter a year earlier. Revenue rose 1.1% to $9.05 billion from $8.95 billion.
The filing listed founder Sky Yangtian Xu as chairman and chief executive. Donald Tang, who had served as executive chairman, was not listed among Shein’s directors or senior management.
Goldman Sachs, Morgan Stanley and JPMorgan are joint sponsors of the listing, the filing showed.
Reuters
