00:00Investors are expected to scrutinize whether SHEIN can justify the $40 billion to $50 billion valuation it is seeking in
00:08a Hong Kong initial public offering after a prospectus felt on Sunday should slow in growth and sharp decline in
00:15profitability.
00:16Revenue rose 8% to $41.8 billion in 2025 but net income fell 39% to $2.06 billion.
00:27In the first quarter of this year, the fast fashion retailer swung to a $99 million loss, the filing showed.
00:34While the quarterly loss partly reflected a $328 million fair value charge on convertible, redeemable preferred shares following an accounting
00:43change, slewing revenue growth and weaker core earnings underscore the company's mounting challenges.
00:48The narrowing margin adds to concerns that SHEIN's rapid rise is encountering headwinds from higher trade costs, increased regulatory scrutiny
00:57and intensifying competition in global e-commerce.
00:59The prospectus showed SHEIN's valuation fell from $98.2 billion following a fundraising round in 2022 to $64 billion after
01:09another funding round in 2024.
01:12Director at Beijing-based Boutique Investment Bank Chanson & Co., Shen Meng argues that SHEIN will unlikely achieve a substantial
01:19uplift in valuation either at its Hong Kong IPO or in the secondary market compared to its last private fundraising
01:25round.
