SEEK Limited (ASX: SEK) has announced a substantial writedown of its Chinese investment following a comprehensive asset review. The Company will recognise a $356 million post-tax impairment charge related to its SEEK Zhaopin investment in its first half FY2026 financial results.
Figure 1: SEEK Limited corporate logo, representing the Australian employment marketplace company. [Source: Wikipedia]
The impairment announcement on 9 February 2026 reflects ongoing challenges in China’s employment market and strategic changes at Zhaopin. SEEK’s total investment value will drop to $182 million from $529 million as at 30 June 2025.
SEEK Zhaopin Investment Value Drops to $182 Million
SEEK Limited undertook a carrying value review of its assets during the half-year financial results process. The review was conducted in accordance with the Company’s accounting policies and applicable accounting standards. The impairment will be subject to the auditor review process before final confirmation.
The SEEK Zhaopin investment writedown comprises two components totalling $356 million post-tax. The first component is $284 million against SEEK’s 23.5 per cent equity accounted investment in Continuing Operations. The second component is $72 million against the net consideration receivable in Discontinued Operations from FY2021.
Why SEEK Earnings Impact Includes Ownership Restructure Plans
Discussions are underway on a proposed simplification of Zhaopin’s ownership structure. The restructure would involve reducing holdings of certain minority shareholders using excess cash held by Zhaopin. This aims to simplify ownership and enable greater shareholder alignment across the business.
Figure 2: SEEK job search platform interface. [Source: Medium]
When SEEK disposed of its controlling interest in Zhaopin during FY2021, some shareholders acquired conditional equity holdings. Not all conditions of that equity holding have been fulfilled. SEEK’s share of that equity would be returned to the Company, and the receivable would be extinguished under the proposed restructure.
SEEK Valuation Impact Sees Ownership Stake Increase to 30 Per Cent
SEEK’s ownership stake in Zhaopin would increase from 23.5 per cent to approximately 30 per cent upon completion. Importantly, no cash outflow would be required from SEEK Limited to achieve this increased stake. The ownership simplification would be funded through Zhaopin’s existing cash reserves.
There are currently no binding commitments between the parties regarding the proposed restructure. SEEK stated that final details will be provided if an agreement is reached between all shareholders.
Strategic Review Shifts Focus to New Growth Areas
Zhaopin continues facing weak macroeconomic conditions in China and competitive pressures in the employment services market. A new management team was appointed to Zhaopin in the first quarter of FY2026. This team has recently completed a comprehensive strategic review of the business.
Figure 3: Zhaopin.com brand logo, one of China’s leading online recruitment platforms. [Source: TechNode]
The strategic review will result in a shift towards new growth areas aligned with China’s economic priorities. This strategic pivot will require additional investment without further capital injection from SEEK Limited. The investments will impact Zhaopin’s margins in calendar years 2026 and 2027 but are expected to strengthen long-term performance.
Industry Outlook: China Employment Services Market
China’s employment services sector faces headwinds from broader macroeconomic challenges and shifting workforce dynamics. Competition among digital recruitment platforms remains intense as companies vie for market share in a slower growth environment.
The Chinese government’s emphasis on strategic industries and technology self-reliance creates opportunities for employment platforms aligned with these priorities. Companies repositioning towards high-priority sectors may benefit from policy support and improved long-term growth prospects.
SEEK Share Price and Market Performance
SEEK Limited shares last traded at $18.22 on the Australian Securities Exchange. The Company has a market capitalisation of $6.54 billion. The 52-week range for SEEK shares is $17.88 to $29.84 per share.
Figure 4: SEEK Limited (ASX: SEK) share price performance chart showing one-year market movement. [Source: ASX]
When Will SEEK Release Half-Year Results?
SEEK Limited will release its first half FY2026 financial results on 17 February 2026. The results will include the $356 million impairment charge related to the SEEK Zhaopin investment. Investors and analysts will be watching for further details on the ownership restructure and strategic direction.
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Final Thoughts
The SEEK Zhaopin investment impairment reflects challenging conditions in China’s employment market and strategic repositioning of the business. While the SEEK valuation impact is substantial in the near term, the potential ownership increase without cash outflow provides some offset.
The Company’s ability to navigate Zhaopin’s transformation will be critical to protecting shareholder value. Investors will closely monitor the ownership restructure progress and strategic review implementation when SEEK reports results on 17 February 2026.
FAQs
Q1. What is the total SEEK Zhaopin investment impairment charge?
Ans. SEEK Limited will recognise a $356 million post-tax impairment charge related to its Zhaopin investment. This comprises $284 million against continuing operations and $72 million against discontinued operations receivables.
Q2. What will SEEK’s Zhaopin investment be worth after the impairment?
Ans. Following the SEEK valuation impact, the total investment in Zhaopin as at 31 December 2025 is expected to be $182 million. This is down from $529 million at 30 June 2025.
Q3. Will SEEK’s ownership stake in Zhaopin change?
Ans. Yes. SEEK’s ownership stake would increase from 23.5 per cent to approximately 30 per cent upon completion of the proposed restructure. No cash outflow would be required from SEEK Limited.
Q4. When will the SEEK earnings impact appear in financial results?
Ans. The SEEK earnings impact will appear in the Company’s first half FY2026 financial results. SEEK Limited will release these results on 17 February 2026.
