Shein, the fast-fashion retailer, revealed a $99-million net loss in its first-quarter financial results, as outlined in its draft Hong Kong IPO prospectus.The loss stems from several factors, including the removal of the U.S.de minimis duty-free policy, which previously allowed shipments under $800 to enter the U.S.without import duties.Now, China-origin products from Shein face tax rates ranging from 10% to 87.5%, significantly impacting sales and growth.The company also reported a $328-million fair-value loss on convertible preferred shares, contributing to the overall deficit.Despite these challenges, Shein’s revenue rose 1.1% year-over-year to $9.05 billion.The IPO filing highlights the company’s efforts to secure funding amid rising costs, regulatory scrutiny, and slower growth.

Shein, which previously attempted listings in New York and London, has now received approval from the China Securities Regulatory Commission (CSRC) for its Hong Kong offering.The prospectus provides investors with insights into the pressures facing the company as it seeks new capital.Goldman Sachs, Morgan Stanley, and JPMorgan are joint sponsors of the listing, signaling confidence in Shein’s market potential.