SEEK to write down Zhaopin investment by $356M

SEEK (ASX:SEK) will recognise a $356 million post-tax impairment charge against its investment in the Chinese recruitment platform, Zhaopin.

The non-cash charge will be included in the company's H1 FY26 financial results, which are scheduled for release on Feb. 17.

The write-down follows a valuation review triggered by persistent macroeconomic weakness in China and increased competitive pressure.

As a result, the carrying value of SEEK’s investment in Zhaopin is expected to fall to $182 million as of Dec. 31, 2025, down from $529 million in June 2025.

SEEK is in discussions to simplify Zhaopin's ownership. The proposed plan involves using Zhaopin’s excess cash to buy out certain minority shareholders.

Due to the expiration of conditional equity holdings from a 2021 transaction, SEEK’s ownership stake is expected to increase from 23.5% to approximately 30% without any additional cash outflow.

A new management team at Zhaopin has completed a strategic review. The business will now focus on growth sectors aligned with China's current economic priorities.