Shein’s net revenue fell to a loss of $99 million (£74.4m) in the first quarter of this year, down from a $395m profit a year earlier, the company revealed in a regulatory filing, after the US and the EU imposed fees for low-cost parcels.

The China-founded, Singapore-based firm made the disclosure in a draft prospectus, as it prepares for what could become the largest cross-border e-commerce Hong Kong IPO this year.

Revenue grew 8 percent in 2025 to reach $41.8bn for the year, before moving into a loss in the first three months of 2026 due to the removal of de minimis exemptions for low-cost parcels in the US and the EU.

Shein also took a one-time accounting charge upon entering the European region.

Revenue from the US market declined more than 14 percent in the first quarter, while the EU market grew slightly to account for about one-third of total sales.

Apparel, for which Shein and competitor Temu are best-known, accounted for 61 percent of net sales in the first quarter, with the rest coming from new areas including beauty, accessories, and home goods.

The company was briefly banned from operating in France last year after regulators said they found child-like sex dolls and weapons for sale on the platform.

Shein said in the filing that it plans to adopt a dual-class structure, which would help preserve control for founder Chris Xu Yangtian, who holds a 33 percent stake in the company.

Shein originally tried to list in New York, but its bid was blocked by US lawmakers in 2023.

A reported effort to hold an IPO on the London Stock Exchange was approved by the Financial Conduct Authority, but this effort was blocked by Chinese regulators, under 2023 laws that allow the China Securities Regulatory Commission (CSRC) to vet applications for offshore listings of Chinese firms.

The securities regulator approved Shein’s listings application earlier this month, preparing the way for it to offer up to 341.6 million overseas-listed ordinary shares on the Hong Kong Stock Exchange.