SHEIN Global Holdings (625) investor relations material

Executive summary

• Net revenues for H1 2026 reached US$20.1 billion, up 1.0% year-over-year, with total orders growing 6.4% to 549 million, reflecting resilience amid macroeconomic and geopolitical challenges.

• Adjusted net income for H1 2026 was US$499 million (2.5% of net revenues), down 55.6% year-over-year, mainly due to higher oil prices and freight costs.

• Net income surged 111.7% year-over-year to US$2.3 billion, driven by fair value gains on convertible redeemable preferred shares.

• The company completed its IPO on 1 September 2026, converting all preferred shares into ordinary shares.

Financial highlights

• Q2 2026 net revenues were US$11.1 billion, up 0.9% year-over-year; adjusted net income was US$228 million, down 66.6%.

• Operating income for H1 2026 was US$493 million, down from US$1,046 million in H1 2025.

• Gross margin improved as cost of sales as a percentage of net revenues fell to 30.2% in Q2 2026 from 33.0% a year earlier.

• Fulfilment expenses rose to 50.4% of net revenues in Q2 2026 due to higher oil and freight costs.

• Cash and cash equivalents at 30 June 2026 were US$3.0 billion; total cash resources were US$15.2 billion.

Outlook and guidance

• Management expects continued external uncertainty in H2 2026, with tariff and logistics cost headwinds likely to persist.

• The fourth quarter is anticipated to drive a significant uplift in orders due to major promotional events.

• The company remains cautiously optimistic on adjusted net income for H2 2026, focusing on cost optimization and productivity.