{"text":[[{"start":7.428,"text":"Shein’s underlying profits fell by two-thirds in the second quarter as the fallout from the Iran war and new import duties took a heavy toll on the fast-fashion retailer, adding to its difficult start to life as a public company."}],[{"start":20.28,"text":"In its first results since listing on the Hong Kong Stock Exchange, Shein reported that adjusted profits declined 66.6 per cent year on year to $228mn, while revenue grew less than 1 per cent to $11.1bn."}],[{"start":35.56,"text":"Xu Yangtian, the company’s chair and founder, said that the drop in profitability was “primarily driven by a sharp spike in oil prices and freight rates amid Middle East geopolitical tensions” in a statement on Monday evening."}],[{"start":48.8,"text":"“We expect the external environment to remain uncertain in the second half of 2026, with tariff headwinds and logistics cost volatility likely to persist,” he added."}],[{"start":59.44,"text":"The China-founded company, which sells cheap clothes made in the country directly to consumers in the west, floated at a cut-price valuation of about $26bn at the start of this month. The highly anticipated market debut came after a years-long quest to join public markets in New York, London and Hong Kong."}],[{"start":76.895,"text":"Shein’s shares have since fallen almost 28 per cent, further pressuring a valuation that was already dented by concerns over how rising international trade levies will affect its business model."}],[{"start":87.72,"text":"The Singapore-domiciled retailer grew rapidly during the Covid-19 pandemic, buoyed by social media hype and booming demand from bored young consumers stuck indoors. That propelled it to a valuation of $100bn in a 2022 funding round, briefly making it the world’s third-largest private company."}],[{"start":106.04,"text":"Shein’s declining sales come after the US last year clamped down on the so-called de minimis loophole, which exempted low-value shipments from customs duties. In July the EU imposed a flat €3 fee on shipments worth less than €150."}],[{"start":120.251,"text":"In the quarter to June, Shein generated more than a third of its revenue from"}],[{"start":125.19,"text":"Europe and just over a fifth from the US."}],[{"start":127.32,"text":"Xu said that he was “cautiously optimistic” that Black Friday and Christmas would drive improved profits in the second half of the year."}],[{"start":133.92,"text":"The company reported net profits of $2.4bn in the three months to June 30, up from a loss of $99mn in the previous quarter and more than triple the figure from the same period a year earlier."}],[{"start":147.8,"text":"Shein attributed the dramatic swing in profit to changes in the value of convertible preference shares, without elaborating further."}],[{"start":158.2,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1790648405_5485.mp3"}