En
EsShein files for Hong Kong IPO as annual profit drops 39%
Shein’s draft prospectus for a Hong Kong IPO reports 2025 revenue of $41.8B, net income down 38.7% to $2.06B, and a $99M Q1 2026 loss after the U.S. ended duty-free treatment for low-value imports.
Online fashion retailer Shein filed a draft prospectus for a Hong Kong initial public offering on Sunday. The document reports 2025 revenue of $41.8 billion, a 38.7% decline in net income to $2.064 billion from 2024, and a $99 million net loss in the first quarter of 2026.
China’s securities regulator cleared Shein’s Hong Kong listing application on July 10. Earlier plans to list in New York and London were withdrawn. The draft omits the size of the offering, a price range, expected proceeds and a listing timetable.
Financial disclosures in the filing show sales rising from $32.1 billion in 2023 to $38.7 billion in 2024 and $41.8 billion in 2025. Net income decreased to $2.064 billion in 2025 from $3.365 billion a year earlier. The company recorded a $99 million net loss in the first quarter of 2026.
The prospectus links the earnings pressure to U.S. trade changes that took effect in May 2025, when the federal government ended the “de minimis” duty-free exemption for shipments under $800. China‑origin products sold directly by Shein or through its marketplace and shipped to U.S. customers are now subject to import tariffs ranging from 10% to 87.5%. The filing notes that these charges have weighed on U.S. sales and increased operating costs.
