SEEK hires CEO for lossmaking Chinese unit

Online employment company SEEK (ASX:SEK) has appointed Evan Guo as the new CEO of its majority-owned subsidiary Zhaopin, which has been running at a loss for years

Online employment company SEEK (ASX:SEK) has appointed a new CEO to its lossmaking Chinese venture Zhaopin.

Evan Guo, formerly CEO of Shanghai-listed transport and logistics company Sinotrans Air Development, has been hired with immediate effect.

Guo also spent more than seven years at McKinsey & Co's Chinese branch, and has an MBA from the USA's JL Kellogg Graduate School.

SEEK, which owns a 56.1 per cent stake in Zhaopin, let go of the recruitment company's former CEO in July and had been hunting for a replacement since then.

SEEK first bought into Zhaopin in 2006, and acquired a controlling stake in 2008. The venture has been losing money since SEEK became a majority owner, and reported a $3.8 million net loss in FY10.

But this was a substantial improvement on the $17.3 million loss in FY09, and revenue also improved by 32 per cent over the period.

In August, SEEK told investors it remained confident of Zhaopin's earnings potential despite its run of losses.

SEK shares on Monday closed 1.38 per cent higher to $7.330.

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