Seek will recognise a $356 million post-tax impairment charge in its upcoming first-half results, related to its investment in Zhaopin, a China-based online job platform. The write-down follows a thorough review of asset carrying values and takes into account current market conditions and Zhaopin’s anticipated earnings. Seek is a global online employment marketplace that connects job seekers with employers, providing recruitment solutions across various industries. The company also offers education and career advisory services.
Following the impairment, Seek estimates its total investment in Zhaopin will be valued at $182 million as of December 31, a decrease from $529 million on June 30. Seek announced that discussions are currently in progress to streamline Zhaopin’s ownership structure, which includes potentially reducing the holdings of certain minority shareholders in the Chinese entity.
As part of the simplification process, Seek’s stake in Zhaopin is expected to increase from 23.5 per cent to approximately 30 per cent. This increase will not require any cash outlay, as it involves the return of a conditional equity interest and the extinguishment of a receivable. Zhaopin’s new management team has conducted a strategic review in response to challenging macroeconomic conditions in China and increased competitive pressures.
The strategic review anticipates a shift towards new growth areas, which is expected to impact margins in calendar years 2026 and 2027. The impairment reflects these anticipated challenges and the revised outlook for Zhaopin’s financial performance in the coming years.
