Seek (ASX:SEK) will recognize a post-tax total impairment charge of AU$356 million related to its investment in Zhaopin in its financial results for the first half of fiscal 2026, subject to the auditor review process, according to a Monday Australian bourse filing.

Following the impairment, the value of the company's total investment in China-based Zhaopin as of Dec. 31, 2025, is expected to be AU$182 million, down from AU$529 million as of June, 30 2025.

Zhaopin's new management team completed a strategic review and talks are being conducted regarding a proposed simplification of its ownership structure, including the reduction in holdings of certain minority shareholders, per the filing.

When Seek divested its controlling interest in Zhaopin in fiscal 2021, some shareholders acquired a conditional equity holding in Zhaopin, resulting in a receivable. Due to not all conditions of that equity holding being fulfilled, the company's share of that equity holding would be returned and the receivable extinguished. As a result, its stake in Zhaopin would increase to around 30% from 23.5% upon completion of all elements of the simplification transaction, with no cash outflow required from the company, the filing said.