Shein Advances Toward Hong Kong IPO Despite First-Quarter Loss
Shein has submitted its draft prospectus for a public listing in Hong Kong, indicating it passed the listing hearing. The company aims to become this year's largest cross-border e-commerce IPO on the exchange despite reporting a $99 million net loss in Q1 2026 compared to a $395 million profit during the same period in 2025. The first-quarter loss was attributed to U.S. import rule changes, European low-value import fees, and one-time accounting charges from entering Europe. While revenue declined over 14% in the U.S., it grew slightly in the EU market, which now accounts for about a third of total sales. Shein is also expanding beyond apparel into beauty, accessories, home goods, and offering its LATR supply chain model to third-party vendors. Shein plans to use a dual-class share structure that preserves control for founder Chris Xu (Xu Yangtian), who owns 33% of the company. The IPO journey has been challenging: it was blocked by U.S. lawmakers in 2023 and later rejected in London due to Chinese regulatory requirements. Recently, China's securities regulator approved Shein’s listing application for Hong Kong.
Topics: Financial Performance Hong Kong Stock Exchange IPO Shein