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Shein posts $99 million quarterly net loss ahead of Hong Kong listing
The draft prospectus links weaker U.S. sales to the Trump administration's removal of the de minimis duty-free rule, which exposed many shipments to tariffs.
Shein swung to a $99 million net loss in the first quarter of this year, according to its draft Hong Kong listing prospectus filed with regulators, setting the stage for investor roadshows and bookbuilding for its long awaited global offering. The Singapore-headquartered online fast-fashion retailer, founded in China, did not disclose the deal size, offer price, listing timetable, or expected proceeds in the draft.
Reuters reports that the filing cites pressure on sales in the U.S. after the Trump administration removed the de minimis duty-free policy for packages valued at less than $800 entering the country. Shein said the change has had an adverse impact on U.S. sales since May 2025 and has contributed to higher expenses, while China-origin products shipped to the U.S. are now subject to tax rates ranging from 10% to 87.5%.
The prospectus also attributes the quarterly loss in part to $328 million in fair-value losses tied to convertible redeemable preferred shares, whose accounting value can fluctuate before a listing. In the same quarter a year earlier, Shein reported net income of $395 million, while revenue rose 1.1% to $9.05 billion from $8.95 billion.
Shein received approval for its Hong Kong listing from the China Securities Regulatory Commission on July 10, following failed attempts in New York and London. The filing lists founder Sky Yangtian Xu as chairman and chief executive, while Goldman Sachs, Morgan Stanley, and JPMorgan are listed as joint sponsors of the offering.