SHEIN's IPO Prospectus Reveals: 273 Million Annual Active Users, 14.2% CAGR in Net Revenue Over Past Three Years

Ebrun Original: Shein International Holdings Limited ("SHEIN") recently passed a hearing by the Hong Kong Stock Exchange and disclosed its post-hearing information set on July 26. The data shows that in 2025, SHEIN's number of active customers reached 273 million (representing a compound annual growth rate (CAGR) of approximately 21.2% from 2023 to 2025), operating revenue was $41.847 billion (a CAGR of approximately 14.2% from 2023 to 2025), and net profit was $2.064 billion.

Specifically, regarding revenue and profit, for the three fiscal years from 2023 to 2025, SHEIN's operating revenues were $32.103 billion, $38.748 billion, and $41.847 billion respectively, showing a trend of year-on-year growth; net profits were $2.789 billion, $3.365 billion, and $2.064 billion respectively; gross margin increased from 60.2% to 67.9%; net profit margin declined from approximately 8.7% in 2024 to approximately 4.9% in 2025.

In terms of cash flow and assets, as of the disclosure date, SHEIN held a total of $5.031 billion in cash and restricted cash. Net cash flow from operating activities in 2025 was $2.838 billion, remaining positive and substantial.

Regarding users and orders, the prospectus shows that SHEIN's number of active customers increased from 186 million at the end of 2024 to 273 million at the end of 2025, a year-on-year increase of approximately 47%; total order volume increased from 715 million orders to 1.078 billion orders, a year-on-year increase of approximately 50.8%. According to the prospectus's disclosure methodology, the average order frequency per customer in 2025 remained stable at 3.8-3.9 times per year.

The prospectus points out that SHEIN pioneered its own operational model, "Large-scale Automated Test and Reorder" (LATR), which is the ultimate solution to the long-standing trilemma in the industry—this model enables it to achieve the optimal balance between product variety, speed of new design launches, and inventory management efficiency. Under the LATR model, the initial production run for each new SKU is only 100-200 units for market testing, with reorders initiated within 5 days after sales validation, significantly reducing inventory risk and shortening the response cycle.

"Test and reorder is not a novel concept, but implementing it on a large scale while maintaining cost-effectiveness is highly challenging. Leveraging our end-to-end intelligent supply chain that maximizes efficiency and capacity utilization, we have applied test and reorder to a vast number of products at an unprecedented scale. LATR structurally minimizes production costs and keeps SHEIN's inventory at low levels while reducing waste, allowing us to pass the savings on to our customers. This is precisely how we are able to offer customers a wide and constantly updated selection of fashion at high value for money," SHEIN explained in the prospectus.

It is reported that the company started its journey with the flagship brand SHEIN and has gradually expanded its brand portfolio to cover more price points, unique styles, and a broader range of product categories. Simultaneously, the company has established close partnerships with numerous brands and designers through the SHEIN Xcelerator program, empowering them to achieve profitable growth with its infrastructure.

It is reported that as of March 31, 2026, SHEIN's product selection included over 2 million apparel styles. Through its first-party model, SHEIN's customers discovered approximately 4,700 new apparel styles on average per day in the first quarter of this year. Beyond apparel, SHEIN has added new product categories to its portfolio, now offering a diverse range including footwear, accessories, beauty, home, and lifestyle products.

Concurrently, SHEIN has built a highly engaged and vibrant online community globally. According to information disclosed in the prospectus, SHEIN's number of active customers increased from approximately 186 million in 2023 to approximately 273 million in 2025, a CAGR of approximately 21.2%; it increased from approximately 241 million for the twelve months ended March 31, 2025, to approximately 281 million for the twelve months ended March 31, 2026. For the years ended December 31, 2023, 2024, and 2025, and for the twelve months ended March 31, 2025, and 2026, SHEIN's annual customer order frequency remained roughly stable at 3.8 times, 4.0 times, 4.0 times, 3.9 times, and 3.9 times respectively.

Regarding industry position, according to a CIC industry consulting report cited in the prospectus, the global fashion market size in 2025 was approximately $1.7 trillion, with online fashion accounting for about $606 billion. SHEIN held a market share of approximately 1.9% in the global fashion market, ranking third, behind Nike (3.0%) and Inditex (2.5%).