Shein, an online fast-fashion retailer, has more than doubled its profits of $2 billion in 2023 and is awaiting regulatory approval from Beijing for its upcoming listing in New York or London, Financial Times reported on Sunday. The company recorded approximately $45 billion in gross merchandise value. Shein, originally founded in China but now headquartered in Singapore, saw its profits surpass $700 million in 2022 and $1.1 billion in 2021. Rivals H&M and Zara owner Inditex reported net profits of $820 million and $5.8 billion in their most recent fiscal years. Shein, popular among Gen Z shoppers, is expected to have the largest initial public offering of the year pending regulatory approval. The company was valued at over $60 billion in a recent financing round. The IPO will indicate Beijing's stance on Chinese companies reincorporated overseas and its willingness to allow them to raise funds on Wall Street. Shein is awaiting approval from Chinese regulators, with expectations for the share sale to be approved in the coming weeks. Despite moving its headquarters to Singapore, Shein operates mainly from China, requiring approval from local regulators. Shein had over 10,000 employees in mainland China at the end of 2022, managing various aspects of the business. Founder Xu Yangtian, also known as Sky Xu, holds 37 per cent of Shein, with other major shareholders including Sequoia China, General Atlantic, and Abu Dhabi sovereign wealth fund Mubadala. Shein has been actively lobbying in Washington amid scrutiny of its business model. Lawmakers in the US have criticised Shein's significant presence in China, with Senator Marco Rubio calling for transparency regarding the company's interactions with the Chinese government. Shein spent nearly $2 million on lobbying in the US last year.
