SHEIN Passes HKEX Listing Hearing, Discloses Prospectus, Set to Become 2026's Largest Cross-Border E-Commerce
SHEIN has passed the Hong Kong Stock Exchange's listing hearing and filed its prospectus, positioning it to be the largest cross-border e-commerce IPO in Hong Kong in 2026. The filing reveals 2025 net revenue of US$41.8 billion and net profit of US$2.06 billion, though revenue growth slowed to 8% and the first quarter of 2026 brought a US$99 million net loss. Active users reached 273 million. U. S. tariff changes have pressured its American revenue share.
On July 26, 2026, SHEIN disclosed its post-hearing information pack to the Hong Kong Stock Exchange, indicating it has passed the listing hearing. This marks its third attempt at an initial public offering, following previous efforts in New York and London. A successful listing would make it the largest cross-border e-commerce IPO in Hong Kong in 2026. Hong Kong's IPO market raised HK$210.2 billion in the first half of 2026, a five-year high. The prospectus represents the first comprehensive disclosure of SHEIN's operating data in its more than ten-year history.
According to the prospectus, SHEIN recorded net revenue of US$41.8 billion, net profit of US$2.06 billion, and 273 million active users in 2025. By 2025 retail sales, it was the world's largest online fashion destination and one of the top five global apparel and footwear companies, surpassing Adidas and Uniqlo's parent Fast Retailing. Its product range exceeds 2 million apparel styles, with an average of about 4,700 new styles launched daily in the first quarter of 2026. The unsold inventory ratio remains in the low single digits, and inventory turnover days held steady at 35 to 38 days. Contract manufacturers grew from roughly 5,800 in 2023 to about 7,500 in 2025, while procurement from the top five suppliers stayed below 17% for years.
Revenue comes from self-operated product sales and platform services. In 2025, product revenue was US$37.1 billion, accounting for 88.7% of total net revenue, while services contributed US$4.74 billion, or 11.3%. The platform shift is evident: services revenue was only 2.7% of the total in 2023, rising by about 9 percentage points over two years.
Revenue growth has been slowing. Net revenue increased around 41% year on year in 2023, moderated to about 21% in 2024, and slipped to 8.0% in 2025. First-quarter 2026 net revenue came to US$9.1 billion, up just 1.1% from a year earlier. Net profit was US$2.789 billion in 2023, climbed to US$3.365 billion in 2024, then dropped to US$2.064 billion in 2025. The first quarter of 2026 produced a net loss of US$99 million, mainly due to a US$328 million loss from fair value changes in convertible redeemable preferred shares. Operating profit for the same quarter was US$258 million, down 25.9% from US$348 million a year ago.
Gross margin improved from 60.2% in 2023 to 67.9% in 2025, but net margin declined from about 8.7% in both 2023 and 2024 to roughly 4.9% in 2025. Expense pressure mounted: marketing spending rose from US$3.45 billion (10.8% of revenue) in 2023 to US$6.19 billion (14.8%) in 2025; fulfillment costs grew from US$13.5 billion (42.1%) to US$19.1 billion (45.6%).
The U. S. market has been hit by tariff policy changes. On May 2, 2025, the United States formally ended the de minimis exemption for packages valued under US$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 will abolish the duty-free exemption for parcels below €150 from July 1, 2026, and impose a flat €3 duty per item, plus a planned administrative handling fee.
SHEIN adopts a weighted voting rights structure. Founder Xu Yangtian holds about 33% through offshore entities. Co-founders Miao Miao, Gu Xiaoqing, and Ren Xiaoqing own 17.4%, 7.3%, and 7.3%, respectively. IDG Capital holds 7.9% and Sequoia Capital 5.8%. The company intends to distribute an annual dividend of no less than 50% of net profit after deducting material capital expenditures following its listing.
Active customers grew from approximately 186 million in 2023 to around 273 million in 2025, and reached about 281 million in the twelve months ended March 31, 2026. Annual order frequency per customer remains between 3.8 and 4.0 times. SHEIN founder Xu Yangtian was born in 1984 in Zibo, Shandong province. He started a cross-border wedding gown business in Nanjing in 2008, officially established SHEIN's predecessor in 2012, and relocated the supply chain from Nanjing to Panyu, Guangzhou in 2014.