Shein lost $99m (£74.1m) in the first three months of the year, against net income of $395m a year earlier, the fast-fashion group said in a filing lodged ahead of its planned stock market debut in Hong Kong.

The company, which has its headquarters in Singapore but was founded in China, said the removal of a US import duty exemption on low-value packages had cut into sales.

“The removal of the US de minimis exemption has had an adverse impact on our sales in the US and the overall growth of our net revenues,” Shein said in the filing.

The de minimis exemption had allowed goods valued at $800 or less to enter the United States without paying tariffs. US consumers used it to buy low-cost goods from online sellers including Shein and Temu.

President Donald Trump signed an executive order ending the exemption globally, which came into effect on 29 August 2025. It broadened an earlier presidential action targeting cheap products from China and Hong Kong to cover the rest of the world. The White House said the global exemption was being used to “evade tariffs and funnel deadly synthetic opioids” to the US.

The order also raised costs for UK exporters shipping low-value goods into the American market.

Shein said it was considering how to respond to the higher charges. “In response to the increased duties and taxes, we are pursuing a wide range of options, including increasing our prices in the US market to offset a portion of the increased costs,” the company said in the filing.

Paper loss on investor shares

The first-quarter figure partly reflected a paper loss of $328m arising from an accounting change relating to special investor shares. Those shares can be converted into ordinary stock at a later date, and their value can move before a listing.

Shein also said the Iran war had hit demand, increased costs and delayed deliveries in some markets. Uncertainty remains over the US-China tariff dispute, which is currently paused.

The filing showed that in the year to the end of March 2026, Shein had 281 million active customers, a rise of more than 16 per cent on a year earlier, who placed more than one billion orders in total.

Hong Kong listing

The China Securities Regulatory Commission approved a Hong Kong share sale on 10 July, after failed attempts to list in New York and London. The listing is expected in the coming months.

The filing did not give details on the size, timetable or pricing of the initial public offering.

Shein had targeted the third quarter of 2025 for a London listing at a projected valuation of £50bn, but paused those preparations after the US tariff changes.

EU levy takes effect

Earlier in July, the European Union imposed a €3 (£2.56; $3.42) levy on low-value e-commerce imports, aimed at what the bloc has said is unfair competition from China.

The European Commission said the temporary duty applies from 1 July 2026 to parcels worth up to €150 imported from outside the EU, and is charged per tariff classification rather than per item. It runs until July 2028.

The UK has taken a slower route. The government has confirmed it will abolish the £135 de minimis customs relief, but not until 2029, citing the need for a gradual transition to avoid border disruption. Helen Dickinson, chief executive of the British Retail Consortium, said in June: “Every day the government delays introducing a new customs system for low-value imports is another day that harms British businesses.”

A Treasury spokesman said the reform “backs our businesses to compete and grow, controls safety and flow of goods at our border, and keeps the UK in line with our international partners”.