SHEIN Passes HKEX Hearing, Set to Become Hong Kong's Largest Cross-Border E-Commerce IPO of 2026
SHEIN has passed the Hong Kong Stock Exchange hearing and published its post-hearing prospectus on July 26, 2026, marking its third IPO attempt after New York and London. If listed, it will become the largest cross-border e-commerce IPO in Hong Kong in 2026. The filing, the first full disclosure of operating data in over a decade, shows 2025 net revenue of $41.8 billion, net income of $2.06 billion, and 273 million active users. The company plans to pay annual dividends of at least 50% of net profit after major capital expenditures.
On July 26, 2026, SHEIN disclosed its post-hearing information pack to the Hong Kong Stock Exchange (HKEX), having passed the exchange's hearing. This marks its third attempt at an initial public offering, following earlier efforts in New York and London. If successfully listed, it will become the largest cross-border e-commerce IPO on the Hong Kong stock market in 2026. In the first half of 2026, the Hong Kong market raised HK$210.2 billion, a five-year high. This prospectus is the first time SHEIN has fully disclosed its operating data since its founding more than a decade ago.
The prospectus shows that in 2025, SHEIN generated net revenue of $41.8 billion, net income of $2.06 billion, and had 273 million active users. By 2025 retail sales value, SHEIN was the world's largest online fashion destination and one of the top five apparel and footwear companies globally, surpassing Adidas and the parent company of Uniqlo. Its product selection exceeds 2 million clothing styles, with an average of about 4,700 new styles launched daily in the first quarter of 2026. Unsold inventory remained in the low single digits as a percentage of total, and inventory turnover days stayed stable at 35 to 38 days. The number of contracted manufacturers increased from about 5,800 in 2023 to about 7,500 in 2025, with the top five suppliers accounting for less than 17% of procurement in any given year.
SHEIN's revenue consists of proprietary product sales and platform service income. In 2025, product revenue was $37.1 billion, accounting for 88.7% of total net revenue; service revenue was $4.74 billion, or 11.3%. In 2023, service revenue accounted for only 2.7%, and the platform transformation raised this share by about 9 percentage points in two years.
Revenue growth has continued to slow. Net revenue grew by about 41% year-on-year in 2023, slowed to about 21% in 2024, and was only 8.0% in 2025. In the first quarter of 2026, net revenue was $9.1 billion, with year-on-year growth narrowing to 1.1%. On the profit side, net income was $2.789 billion in 2023, rose to $3.365 billion in 2024, and fell to $2.064 billion in 2025. The first quarter of 2026 recorded a net loss of $99 million, mainly due to a $328 million loss from changes in the fair value of convertible redeemable preferred shares. Operating profit in the first quarter of 2026 was $258 million, down 25.9% from $348 million in the same period of 2025.
Gross margin rose from 60.2% in 2023 to 67.9% in 2025, but net margin fell from about 8.7% in 2023 and 2024 to about 4.9% in 2025. Cost pressures increased: marketing expenses rose from $3.45 billion in 2023 (10.8% of revenue) to $6.19 billion in 2025 (14.8% of revenue); fulfillment expenses increased from $13.5 billion in 2023 (42.1% of revenue) to $19.1 billion in 2025 (45.6% of revenue).
The U. S. market has been affected by tariff policy. On May 2, 2025, the United States formally terminated the de minimis tariff exemption for packages valued under $800 from mainland China and Hong Kong. SHEIN's U. revenue share fell from 27.0% in 2024 to 24.1% in 2025, and further to 22.5% in the first quarter of 2026. The European Union, effective July 1, 2026, abolished the tariff exemption for parcels under €150, imposed a flat duty of €3 per item category, and plans to add administrative processing fees.
In terms of shareholding structure, SHEIN adopts a dual-class share structure. Founder Xu Yangtian holds about 33% through an offshore company; co-founders Miao Miao, Gu Xiaoqing, and Ren Xiaoqing hold 17.4%, 7.3%, and 7.3%, respectively. IDG Capital holds 7.9%, and Sequoia Capital holds 5.8%. SHEIN intends to declare annual dividends of no less than 50% of net profit (after major capital expenditures) after listing.
Active customer numbers increased from about 186 million in 2023 to about 273 million in 2025, and reached about 281 million in the twelve months ended March 31, 2026. Average annual order frequency per customer remained at 3.8 to 4.0 times. Founder Xu Yangtian, born in 1984 in Zibo, Shandong, started a cross-border wedding dress business in Nanjing in 2008, formally established the predecessor of SHEIN in 2012, and moved the supply chain from Nanjing to Panyu, Guangzhou, in 2014.