- Shein’s profits surge to $2 billion in 2023.
- The company faces regulatory hurdles in the U.S. and Hong Kong for its IPO plans.
- Shein’s Chinese operations have come under scrutiny from U.S. lawmakers.
Shein, the Singapore-based ultra-fast fashion company, has reported a remarkable profit increase for 2023.
The company’s net income surged to over $2 billion, a significant jump from the $700 million recorded in 2022, according to the Financial Times. This impressive financial performance has allowed Shein to outshine industry competitors such as H&M, which posted profits of $820 million.
Regulatory market conditions impact IPO Plans
Shein is currently seeking regulatory approval for its initial public offering (IPO). However, the company believes the U.S. Securities and Exchange Commission (SEC) may not approve its listing plans in New York.
Additionally, the downturn in Hong Kong’s financial market has affected fundraising opportunities, casting doubt on the possibility of an IPO there. Consequently, Shein is exploring the option of moving its market debut to London.
Chinese operations under scrutiny
Despite being headquartered in Singapore, Shein’s operations remain heavily reliant on its Chinese roots, with a significant number of employees based in China.
In February, U.S. Senator Marco Rubio called on the SEC to block Shein’s attempt at going public, citing the need for more information on the company’s Chinese operations, among other concerns.
To read the original article: https://www.techinasia.com/shein-posts-2x-profit-growth-2b-ipo
