Shein loses $99 million during the first quarter

Chinese e-commerce company Shein announced weak results during the first quarter of this year and before the initial public offering of its shares on the Hong Kong Stock Exchange.

According to a disclosure submitted by the China-based company to the Hong Kong Stock Exchange, its losses during the first quarter amounted to $99 million, compared to profits of $395 million during the same period last year.

On the other hand, the company’s total business volume increased by 1.1% annually during the first three months of this year to $05.9 billion.

There is no confirmation of SheIn’s ability to maintain its profitability in the future, as it believes that its commercial activities face risks, “many of which are beyond its control,” according to its official statement.

According to Shein, the risks to its activities are international tensions affecting trade policy and thus the sale of products. The company also cited government regulations as a risk to its business.

Shein particularly pointed to the United States’ abolition of the minimum rule for duty-free postal parcels, which led to higher costs for its activity in the United States, and the European Union is imposing new rules even on postal parcels worth less than 150 euros ($73,170).

It is noteworthy that Shein ships its goods from manufacturers in China directly to customers around the world, making the goods available at particularly low prices.