Shein faces investor pressure to slash valuation to US$30 billion: sources
Chinese fast-fashion retailer Shein is under pressure to cut its valuation to about US$30 billion, according to people familiar with the matter, having in the past been valued at more than three times that amount.
Shein shareholders are suggesting that an adjustment is needed to help get its potential initial public offering (IPO) in the UK over the line, the people said, asking not to be identified because the talks are private.
Shein has had a bumpy ride in its attempt to list, with questions raised over its supply-chain operations and labour practices amid mounting uncertainty over global trade relations and political tension. The company diverted its IPO application to London last year after its goal of listing in the US faltered.
Representatives for Shein did not immediately respond to a request for comment.
Founded in China but now based in Singapore, Shein became one of the world's most valuable start-ups thanks to its high-volume, low-cost fashion. Its investors include IDG Capital, Mubadala Investment, Tiger Global Management and HongShan Capital, formerly known as Sequoia Capital China.
Shein and rival Temu, owned by PDD Holdings, have attracted customers in places such as the US with cheap products shipped directly from Chinese suppliers, a model that has proved popular as households struggle with the rising cost of living. They also pose a challenge to the likes of Amazon.
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Asia Times
3 hours ago
- Asia Times
Price war sparks EV financial crisis concerns in China
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He stated that the bankruptcy of any large auto firm would result in many people losing their jobs, harm upstream and downstream companies, and negatively impact the Chinese economy. Li Yunfei, general manager of BYD's brand and public relations division, responded to Wei's comments in a Weibo post on May 30. 'Following the stunning comments made by Great Wall Motors' Wei, many articles and videos said BYD is an Evergrande in the auto sector,' Li said. 'I feel confused and angry, and find these comments laughable.' 'If BYD's debt-to-asset ratio (70%) is a sign of high risk, are Ford (84%), General Motors (76%), and Geely (68%) all at risk?' he said. He said many malicious commentators ignored that BYD's interest-bearing debts and accounts payable are lower than many other players. He added that Chinese EVs have become mainstream products overseas and will continue to see good prospects. 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Heavily indebted Chinese property developers have around 60-90% debt ratios. However, accounting consultancy GMT Research said in January that BYD's net debt might be 323 billion yuan as of mid-2024, contrasting with the official figure of 27.7 billion yuan. It stated that the company's Dilink platform, a supply chain financing system, may conceal a substantial amount of off-balance sheet debt. In other words, BYD may have delayed supplier payments. Wang Guo-chen, an assistant researcher at Taiwan's Chung-hua Institute for Economic Research (CIER), said BYD is only one of the many Chinese firms struggling to survive in an oversupplied market. On March 25, China's State Council amended the Regulation on Ensuring Payments to Small and Medium-Sized Enterprises, requiring companies to pay their suppliers within 60 days, effective June 1. BYD said on June 11 that it will standardize its payment period for suppliers to 60 days. 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HKFP
3 hours ago
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Hong Kong Originals: The 85-year-old flask brand that bears witness to rise and fall of city's manufacturing era
As Hong Kong's economic boom faded and manufacturing moved to China, some long-established, family-run companies preserved their traditions as others innovated to survive. In our new series, HKFP documents the craftsmanship and spirit behind the goods that are still proudly 'Made in Hong Kong,' as local firms navigate the US-China trade war. Few guests staying at the Camlux Hotel in Hong Kong would know that a giant glass furnace once lay beneath where they are spending the night. The Kowloon Bay hotel was formerly the factory building of Camel, an 85-year-old local metal kitchenware brand. The company moved into the premises in 1986 and vacated the property in 2013. Four years later, Camel opened a hotel in its place as part of a government revitalisation plan for the industrial district. 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Today, like many of the city's homegrown brands, part of Camel's production takes place across the border in mainland China – a move that is neither new nor avoidable, the director said. Former manufacturing hub Hong Kong saw its manufacturing heyday from the 1950s to the 1970s, with factories – concentrated in areas such as Sham Shui Po, Mong Kok, Kowloon City and Western – producing everything from clothes and toys to watches and electronics. Its rise as an export-oriented economy came amid World War II's destruction of industrial bases in Europe and America. Hong Kong seized the opportunity, resuming production and supplying goods to the world. The director's father, Philip Leung, studied engineering in the UK and later completed a postgraduate degree in glass technology. He returned to the city in the 1960s, when he was in his late 20s, to help with the family business. 'He wanted to bring back the knowledge from the Western world,' Raymond Leung said. Under Philip Leung's leadership, Camel ramped up its manufacturing, expanding its production of metal flasks, ice buckets, and plate covers to supply hotels around the world. In the 1980s and 1990s, Hong Kong's manufacturing industry began losing its edge to mainland China, as the latter modernised under the government's reform policies. Many companies in the city relocated their production across the border, attracted by cheaper labour and other costs, but the Leungs stayed put. While minor parts were sourced from mainland China, Camel products' main components were always made in-house. But over the decades, it became clear that it would not last. In 2006, Camel turned off its glass furnace, which was operating on the third floor of what is now the Camlux Hotel, for good. The company was unable to find enough people to operate the furnace after some of its workers passed away. 'Because it's a furnace, you can't turn it off. 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Over the past two years, Camel has hosted design competitions inviting the public to submit Hong Kong-themed illustrations. The winning designs were printed onto Camel's signature flasks and added to the company's product collection. Last year's first-place prize went to a red, white and blue design – a nod to the traditional Hong Kong nylon canvas bags – that featured the city's icons, including a pawn shop sign, a cha chaan teng cup, and the city's tram. 'Doing the competitions is a way for us to engage more local talent,' Leung said. People have asked Leung if Camel, with such a long history, would reissue some of its 'nostalgic' products – like the big flasks for households that were common in the past. The director said he 'wasn't completely against' the idea, but he preferred the company to innovate new products instead. In recent years, Camel has launched coffee tumblers and sports water bottles inspired by new trends in the market. 'You can't always go back to your archive,' Leung said. 'You have to move on.' Original reporting on HKFP is backed by our monthly contributors. Almost 1,000 monthly donors make HKFP possible. Each contributes an average of HK$200/month to support our award-winning original reporting, keeping the city's only independent English-language outlet free-to-access for all. Three reasons to join us: 🔎 Transparent & efficient: As a non-profit, we are externally audited each year, publishing our income/outgoings annually, as the city's most transparent news outlet. 🔒 Accurate & accountable: Our reporting is governed by a comprehensive Ethics Code. We are 100% independent, and not answerable to any tycoon, mainland owners or shareholders. Check out our latest Annual Report, and help support press freedom.
RTHK
5 hours ago
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SAR to target markets with 'the best returns': CE
SAR to target markets with 'the best returns': CE The CE says the government will do more to connect with more countries and regions around the world. Photo: RTHK Frank Yung reports Hong Kong should set its sights on markets with "the best returns in the shortest time" as the government connects with more countries and regions around the world, the city's leader has said. Chief Executive John Lee said while many private businesses have started seeking new markets to diversify risks amid the Sino-US tariffs war, there's a need for his administration to do the same. "There are just so many different parts of this world that we can do good business and build relations with. I'll expand my network. I'll not just focus on one or two countries or markets," he said. To generate the best returns for Hong Kong, it should look for potential markets that are mutually attractive, the CE said. He added they must also place emphasis on the country and the SAR. Lee has made several overseas visits, including to Asean countries and the Middle East, to help promote the city. On possible future trips, he said there's room to develop trade with South American countries, and the Central Asia region also has potential. Belt and Road countries are also under the administration's radar, according to the city's leader. He acknowledged the presence of both "supporting forces" and "counter-currents" in the SAR's charm offensive. "[When] the counter-current is against me, if I still want to swim in that direction, I swim double fast, I make double the effort. I'm asking everybody in the government to double the effort, tell Hong Kong's true story," Lee said. The CE added that Hong Kong must work hard to continue attracting investment and professionals from outside the territory. "Investment is something that drives changes, investment is also something that drives talents to come and talents to remain, because investment leads to actual business," he said.
