Shein, the Singapore-headquartered fast-fashion ecommerce company founded in China, reported a US$99 million loss for the first quarter of 2026 in Hong Kong initial public offering filings published on July 26.

The result reversed from US$395 million in net income a year earlier as US sales weakened and a US$328 million fair-value charge on convertible redeemable preferred shares weighed on earnings.

Its operating margin narrowed to 2.9% from 3.9%, while US revenue, its largest market, fell 14.3% to US$2.04 billion after Washington removed duty-free treatment for low-value shipments from China and Hong Kong that had allowed parcels worth under US$800 to enter duty-free.

Shein said it is pursuing options, including raising US prices to offset tariffs of 10% to 87.5%.

The Hong Kong filing follows failed listing attempts in New York and London.

Shein received China Securities Regulatory Commission approval for a Hong Kong listing on July 10 after its London initial public offering plan failed to secure Chinese regulatory approval.

The company did not disclose the IPO size, offer price, timetable, or expected proceeds. It had targeted a valuation of US$40 billion to US$50 billion, well below the US$100 billion valuation reported in 2022.

🔗 Source: Reuters