Shein publishes first listing filing for Hong Kong IPO, revealing profit margin declines despite rapid revenue growth
Chinese fast-fashion giant Shein has published its first listing filing for a planned initial public offering in Hong Kong. The filing reveals that while the company's revenue for the fiscal year ended December 2025 expanded by 8% to $41.8 billion, its net profit fell by 38.7% to $2.064 billion. This decline in profitability reflects intensifying competition and rising logistics costs, as well as the erosion of the 'de minimis' rule which previously allowed the company to ship low-value goods directly from China to consumers in the U.S. and Europe while circumventing tariffs. Shein aims to raise up to $3 billion from the listing, with proceeds intended for IT investments, specifically artificial intelligence and logistics hub development in Guangdong Province. After failing to list in New York and London due to regulatory hurdles and deteriorating U.S.-China relations, the company is now moving forward with the Hong Kong listing. The filing serves as the foundation for an upcoming investor roadshow and formal book-building process.