Shein registers quarterly loss ahead of Hong Kong IPO | The Canberra Times

Ad News World News Save Share News World News News Home Home / News / World News Shein registers quarterly loss ahead of Hong Kong IPO Updated July 27 2026 - 2:38am , first published 2:32am Updated July 27 2026 - 2:38am , first published 2:32am Save Share Shein is seeking new funds amid higher costs, slower growth and regulatory scrutiny ⁠in key markets. Photo: AP PHOTO Shein has swung to a loss in ‌the first quarter of this year, the draft Hong Kong listing prospectus of the online fast-fashion retailer shows, as its ‌sales took a hit from the United States' removal of the "de minimis" duty-free policy. Subscribe now for unlimited access. Login or signup to continue reading Save 30% All articles from our website & app The digital version of Today's Paper Crosswords, Sudoku and Trivia All other regional websites in your area Continue The $US99 million ($A142 million) net loss is mentioned in a filing that 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 United States 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 $US800 to enter ​the US without import duties. Shein said China-origin products sold by it or through its marketplace and shipped to the US are now subject to tax rates ranging from 10 per cent to 87.5 per cent. The ​first-quarter loss was also caused by $US328 ​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 $US395 million in the same quarter a year earlier. Revenue rose 1.1 per cent to $US9.05 billion from $US8.95 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. Australian Associated Press Save Share More from World News UK airport Gatwick left without working toilets 7m ago Shein registers quarterly loss ahead of Hong Kong IPO 35m ago Germany hunts Islamist suspect after Pride ramming 1hr ago Kremlin won't comment on US-Ukraine air ceasefire talks 1hr ago Meghan tells MasterChef Australia Harry is a 'charmer' 2hrs ago Fires threaten Bordeaux as France, Spain battle blazes Newsletters & Alerts View all As it happens Breaking news alert Be the first to know when news breaks. Loading... 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