Shein is moving closer to a public listing in Hong Kong after submitting its draft prospectus on Sunday, signaling that the ultra-fast-fashion giant has passed the listing hearing. If successfully listed, Shein would become the largest cross-border e-commerce IPO in Hong Kong this year.

According to the filing, revenue grew 8 percent to reach $41.8 billion in 2025, but for the first quarter of 2026, Shein recorded a net loss of $99 million, compared to a $395 million profit in the same period in 2025. The loss resulted from impacts from changing U.S. import rules and European fees on low-value imports and a one-time accounting charge upon entering the European region.

The U.S. market’s revenue declined more than 14 percent in the first quarter, while the EU market grew slightly to account for around one-third of total sales.

Beyond apparel, which accounted for around 61 percent of net sales during the first quarter, Shein has been broadening its scope by expanding into categories including beauty, accessories and home. It’s also working on offering its small-batch, rapid-replenishment supply chain capability, dubbed the “LATR model,” to third-party vendors.

The model can keep inventory rates in the single digits, compared with an industry average of around 30 percent, claimed Shein.

According to the filing, Shein plans to adopt a dual-class share structure, which helps preserve power for its founder Chris Xu, also known as Xu Yangtian, who holds a 33 percent stake in the company.

Shein’s IPO journey has been a long and winding one.

The retailer had originally tried to list on the New York Stock Exchange, but its bid was blocked by U.S. lawmakers in 2023. It later pivoted to London in 2025, according to reports at the time. Although the IPO got a green light from the U.K.’s Financial Conduct Authority, it was blocked by Beijing, which in 2023 passed a new rule that allowed the CSRC to vet applications for offshore listings of Chinese firms.

Earlier this month, China’s securities regulator finally approved Shein’s listing filings, allowing the company to issue up to 341.6 million overseas-listed ordinary shares on the Hong Kong Stock Exchange.