• Spackman Media Group artist Son Ye-jin headlines in JTBC’s new drama, 39, which first aired yesterday
• The K-drama recorded an audience rating of 4.4% on its debut, based on Nielson Korea’s nationwide household standards
• Represented by MSteam, a wholly-owned subsidiary of Spackman Media Group, Son Ye-jin previously starred in tvN’s drama, CRASH LANDING ON YOU, which achieved massive record-breaking viewership success in Korea and Japan

SINGAPORE – Media OutReach – 17 February 2022 – Spackman Entertainment Group Limited (the “Group“), one of Korea’s leading entertainment production groups founded in 2011 by media & technology investor Charles Spackman, wishes to announce that Son Ye-jin of MSteam Entertainment Co., Ltd. (“MSteam“), a wholly-owned subsidiary of the Group’s associated company, Spackman Media Group Limited (“Spackman Media Group“), headlines in JTBC’s new drama, 39, which first aired yesterday.

Directed by Kim Sang-ho of RUN ON (2020) and written by Yoo Young-ah of ENCOUNTER (2018) & KIM JI YOUNG, BORN IN 1982, 39 is a 12-episode drama about the romance and everyday lives of three friends who are on the verge of turning 40. Son Ye-jin plays the role of a 39 year-old dermatologist, who was born and raised by wealthy parents and presently works at her own clinic in Gangnam, Seoul.

The K-drama recorded an audience rating of 4.4% on its day of release, based on Nielson Korea’s nationwide household standards.

Son Ye-jin’s previous tvN K-drama, CRASH LANDING ON YOU, achieved massive record-breaking viewership success in Korea and became a top hit in Japan, attaining #1 on Japan’s Netflix for four months. The K-drama was one of the top 10 Most Watched Netflix Shows in the United States. Son Ye-jin was awarded the Hallyu Drama Best Actress Award at the 15^th Seoul International Drama Awards for her role in CRASH LANDING ON YOU.

Her recent films include BE WITH YOU (2018), THE NEGOTIATION (2018) and THE LAST PRINCESS (2016), all of which were invested by the Group and/or Spackman Media Group. 

In 2018, Son Ye-jin’s performance in BE WITH YOU, which broke the all-time first week box office historical record for romance film in Korea, clinched her the Best Actress Award at the Seoul Awards.  Son Ye-jin also received the Prime Minister’s Commendations at the 2018 Korean Popular Culture & Arts Awards and won the Best Actress for Hallyu Dramas at the 2018 Seoul International Drama Awards, underscoring her international status as an iconic Korean actress. 

Previously, Son Ye-jin was selected as the brand ambassador for US skin care brand Skinceuticals and as luxury fashion brand Valentino’s muse. She was also the face of Crocodile’s woman apparel and Smart Communications Inc., a leading telecommunications service provider in the Philippines.

Other than Son Ye-jin, MSteam also represents internationally recognized actor Wi Ha-jun of SQUID GAME and top actress Lee Min-jung, who won the Top Excellence Award at the 2020 APAN Star Awards.  

About Spackman Entertainment Group Limited

Spackman Entertainment Group Limited (“SEGL” or the “Company“), and together with its subsidiaries, (the “Group“), is one of Korea’s leading entertainment production groups. SEGL is primarily engaged in the independent development, production, presentation, and financing of theatrical motion pictures in Korea.

The Company was founded in 2011 by media and technology investor Charles Spackman who served as the Company’s Executive Chairman until 2017. For the past two decades, Mr. Charles Spackman has been a powerhouse in the Korean entertainment industry starting in the early 2000’s with the pioneering success of Sidus Pictures, the largest movie production company at the time and the first to be listed in Korea. Mr. Spackman is also the Founder, Chairman and Chief Executive Officer of the global investment firm, Spackman Group. For more information, please visit http://www.charlesspackman.com

Since its founding, SEGL had produced more than 30 major motion pictures including a number of the highest grossing and award-winning films in Korea, namely #ALIVE (2020), CRAZY ROMANCE (2019), DEFAULT (2018), MASTER (2016), THE PRIESTS (2015), SNOWPIERCER (2013), COLD EYES (2013) and ALL ABOUT MY WIFE (2012).

Our films are theatrically distributed and released in Korea and overseas markets, as well as for subsequent post-theatrical worldwide release in other forms of media, including online streaming, cable TV, broadcast TV, IPTV, video-on-demand, and home video/DVD, etc. Generally, we release our motion pictures into wide-theatrical exhibition initially in Korea, and then in overseas and ancillary markets.

The Group also invests into and produces Korean television dramas. In addition to our content business, we also own equity stakes in entertainment-related companies and film funds that can financially and strategically complement our existing core operations. SEGL is listed on the Catalist of the Singapore Exchange Securities Trading Limited under the ticker 40E.

Production Labels

SEGL owns Novus Mediacorp Co., Ltd. (“Novus Mediacorp“), an investor, presenter, and/or post-theatrical distributor for a total of 79 films (58 Korean and 21 foreign) including ROSE OF BETRAYAL, THE OUTLAWS and SECRETLY, GREATLY, which was one of the biggest box office hits of 2013 starring Kim Soo-hyun of MY LOVE FROM THE STARS, as well as FRIEND 2: THE GREAT LEGACY. In 2012, Novus Mediacorp was also the post-theatrical rights distributor of ALL ABOUT MY WIFE, a top-grossing romantic comedy produced by Zip Cinema. In 2018, THE OUTLAWS, co-presented by Novus Mediacorp broke the all-time highest Video On Demand (“VOD“) sales records in Korea. For more information, please visit http://novusmediacorp.com

The Company owns a 100% equity interest in Simplex Films Limited (“Simplex Films“) which is an early stage film production firm. The maiden film of Simplex Films, JESTERS: THE GAME CHANGERS (2019), was released in Korea on 21 August 2019. Simplex Films has several line-up of films including HURRICANE BROTHERS (working title).

The Company owns a 100% equity interest in Take Pictures Pte. Ltd. (“Take Pictures“) which produced STONE SKIPPING (2020) and THE BOX (2021), and shall release GUARDIAN (working title) in 2022 tentatively.

The Company owns a 100% equity interest in Greenlight Content Limited (“Greenlight Content“) which is mainly involved in the business of investing into dramas and movies, as well as providing consulting services for the production of Korean content. Through the acquisition of Greenlight Content, the Group’s first co-produced drama, MY SECRET TERRIUS, starring top Korean star, So Ji Sub, achieved #1 in drama viewership ratings for its time slot and recorded double digits for its highest viewership ratings. Greenlight Content was one of the main investors of MY SECRET TERRIUS.

The Company owns a 20% equity interest in The Makers Studio Co. Ltd., which plans to produce and release four upcoming films, the first of which will be THE ISLAND OF THE GHOST’S WAIL, a comedy horror film.

Talent Representation

The Company holds an effective shareholding interest of 43.88% in Spackman Media Group Limited (“SMGL“). SMGL, a company incorporated in Hong Kong, together with its subsidiaries, is collectively one of the largest entertainment talent agencies in Korea in terms of the number of artists under management, including some of the top names in the Korean entertainment industry. SMGL operates its talent management business through renowned agencies such as MSteam Entertainment Co., Ltd. (Son Ye-jin, Lee Min-jung, Ko Sung-hee), UAA&CO Inc. (Song Hye-kyo, Yoo Ah-in, Park Hyung-sik), Fiftyone K Inc. (So Ji Sub, Ok Taec-yeon), SBD Entertainment Inc. (Son Suk-ku), and Kook Entertainment Co., Ltd. Through these full-service talent agencies in Korea, SMGL represents and guides the professional careers of a leading roster of award-winning actors/actresses in the practice areas of motion pictures, television, commercial endorsements, and branded entertainment. SMGL leverages its unparalleled portfolio of artists as a platform to develop, produce, finance and own the highest quality of entertainment content projects, including theatrical motion pictures, variety shows and TV dramas. This platform also creates and derives opportunities for SMGL to make strategic investments in development stage businesses that can collaborate with SMGL artists. SMGL is an associated company of the Company. For more information, please visit http://www.spackmanmediagroup.com

The Company owns a 100% equity interest in Constellation Agency Pte. Ltd. (“Constellation Agency“). Constellation Agency, which owns The P Factory Co., Ltd. (“The P Factory“) and Platform Media Group Co., Ltd. (“PMG“), is primarily involved in the business of overseas agency for Korean artists venturing into the overseas market. The P Factory is an innovative marketing solutions provider specializing in event and branded content production. PMG is a talent management agency which represents and manages the careers of major artists in film, television, commercial endorsements and branded entertainment.

Strategic Businesses

The Company owns a 100% equity interest in Frame Pictures Co., Ltd. (“Frame Pictures“). Frame Pictures is a leader in the movie/drama equipment leasing business in Korea. Established in 2014, Frame Pictures has worked with over 25 top directors and provided the camera and lighting equipment some of Korea’s most notable drama and movie projects including ITAEWON CLASS (2020), HOW TO BUY A FRIEND (2020), KIM JI-YOUNG, BORN 1982 (2019), FOUR MEN (2019) and ASADAL CHRONICLES (2019).

We also operate a café-restaurant, Upper West, in the Gangnam district of Seoul and own a professional photography studio, noon pictures Co., Ltd.

For more details, please visit http://www.spackmanentertainmentgroup.com/

#SpackmanEntertainmentGroupLimited

HONG KONG SAR – Media OutReach – 17 February 2022 – Mandatory audit partner rotation has become a common practice around the world since the Sarbanes-Oxley Act was passed in the U.S. in 2002. Also known as the SOX, the purpose of this act is to protect investors from potential accounting fraud and to improve corporate financial disclosure.

(Source: iStock)

The purpose of mandatory auditor rotation is to prevent accounting fraud but the close connections between incoming and outgoing auditors raise questions on the effectiveness of the practice in China

The year after the SOX was passed, China’s Securities and Regulatory Commission and Ministry of Finance signed into a regulation requiring listed companies to rotate their auditors regularly. This practice is officially known as mandatory auditor rotation. It aims to prevent audit partners from providing services to a public company for more than five consecutive years, and prohibits the same audit partner from resuming audit services for the same client until a two-year cooling-off period expires.

Although 18 years have passed since this regulation was introduced, very little was known about how audit firms actually select audit partners to succeed the previous ones after their five-year engagement. Similarly, very little was known about the economic consequences and the audit quality when audit firms use different rotation strategies concerning the choice of auditors.

A group of researchers decided to look into the intricate patterns of auditor rotation practice in China to see whether there were any close network connections between the outgoing and incoming auditors, and what kind of impacts those connections might have on audit quality and auditor performance.

The research, titled Network Analysis of Audit Partner Rotation, was conducted by Wu Donghui, Professor at The Chinese University of Hong Kong (CUHK) Business School and its Director of Centre for Institutions and Governance, Prof. Jeffrey Pittman at the Memorial University of Newfoundland, and Lin Wang at the Central University of Finance and Economics.

An extensive range of data was gathered for the period 2003-2015. Sources included the China Stock Market and Accounting Research database, A-share companies’ annual reports, IPO prospectuses and a public accountant database compiled by the Chinese Institute of Certified Public Accountants. A total of 4,257 pairs of incumbent-successor auditors were selected for the research, as well as 53,046 pairs of potential candidates who could have been chosen by the companies.

Guanxi Ensures Smoother Transitions

The researchers found substantial evidence that auditors who shared more teamwork experience with their predecessors were more likely to be selected when the engagements are rotated. In other words, audit firms prefer to consider auditors with professional guanxi (the Chinese concept of social networks) with the outgoing auditors rather than auditors without such connections.

Why do audit firms tend to assign the rotated engagements to auditors who are familiar with the outgoing audit partners? Prof. Wu explains that this preference is rooted in audit firms’ pragmatic approach to the transitions between the outgoing and incoming auditors.

“An auditor who has worked at a client company for five years is someone who has accumulated quite a lot of knowledge about that particular company. This kind of company-specific knowledge is complex and sometimes tacit and subtle. If this auditor has an existing interpersonal relationship with the incoming auditor, the process of knowledge transfer can be a lot smoother than if a stranger comes onboard,” says Prof. Wu.

“Client companies appreciate that smooth transition because first of all, they don’t have to risk the loss of knowledge after the transition. Second, they don’t need to pay for a tonne of extra billable hours for the incoming auditor to learn the ropes.”

The research found that auditors with an established guanxi with the incumbent auditors are more likely to be assigned to rotations where the companies have more complex accounting needs. In addition, when none of the incoming auditors has any knowledge about the company, candidates who are connected with the incumbent were favored.

Guanxi among Auditors May Affect Objectivity

While choosing an auditor who is familiar with the outgoing one can be beneficial for companies, this practice raises the questions: Would the guanxi between the pair of auditors make the audit less objective? Wouldn’t this defeat the original intension of the SOX and its application in China?

Prof. Wu admits that these were the concerns of his research team and they decided to find out through their study.

“Yes, it’s true that a friendly successor may not closely scrutinize the predecessor’s work and is less likely to catch and correct problems in the auditing process. When the two auditors are closely connected, the audit firms may not be able to benefit from the supposed ‘fresh-eye effect’ of rotating out an auditor after five years, thus potentially defeating the purpose of the partner rotation practice,” he admits.

In addition, Prof. Wu points out that the practice of hiring a familiar auditor can be regarded as an act of “favouritism.” This may discourage the incoming audit partner from challenging the outgoing one’s work, thus potentially weakening the objectivity or independence of having a new auditor on the job.

According to Prof. Wu, an audit firm may also overlook an incoming auditor’s competence level in the quest to ensure a smooth transition between the outgoing and incoming auditors. This may influence the quality of audits.

Better Transitions without Sacrificing Audit Quality

The above concerns were put to rest after the research team found that a high level of mutual trust between the auditing pairs not only enhanced the transfer of client-specific knowledge and expertise, but also improved the accuracy of audit reports and client satisfaction after the rotation took place.

“Based on our audit-quality analysis, we found no evidence that audit quality suffers when the incoming partners are closely connected to the rotated-off partners,” remarks Prof. Wu.

In fact, Prof. Wu says, the study provides evidence that prior teamwork experience with the incumbent auditors actually increases the successors’ tendency to issue Modified Audit Opinions (MAOs). MAOs are usually issued when there are ongoing accounting or disclosure issues. So when the study found that successors actually issued more MAOs, it implies that the act of hiring “familiar” auditors does not compromise the neutrality and quality of the audits performed by the new auditor.

“Our MAO analysis suggests that when the succeeding auditors have a professional guanxi with the incumbent, they actually can provide more accurate warning signals about their clients’ looming financial or accounting problems to the market,” says Prof. Wu.

This study contributes to a new, more positive view than existing literature on the subject of mandatory auditor rotation. It has found new evidence that companies do prefer to hire auditors who have an established guanxi with the outgoing auditor. It also provides assurance for audit firms to design their auditor rotation policies in an optimal way so that they can reap the benefits while ensuring a high audit quality.

Reference:

Pittman, Jeffrey A. and Wang, Lin and Wang, Lin and Wu, Donghui, Network Analysis of Audit Partner Rotation (November 15, 2018). Available at SSRN: https://ssrn.com/abstract=3087491 or http://dx.doi.org/10.2139/ssrn.3087491

This article was first published in the China Business Knowledge (CBK) website by CUHK Business School: https://bit.ly/3qO9Vwo

About CUHK Business School

CUHK Business School comprises two schools – Accountancy and Hotel and Tourism Management – and four departments – Decision Sciences and Managerial Economics, Finance, Management and Marketing. Established in Hong Kong in 1963, it is the first business school to offer BBA, MBA and Executive MBA programmes in the region. Today, CUHK Business School offers 9 undergraduate programmes and 18 graduate programmes including MBA, EMBA, Master, MSc, MPhil and Ph.D. The School currently has more than 4,500 undergraduate and postgraduate students from 20+ countries/regions.

In the Financial Times Executive MBA ranking 2021, CUHK EMBA is ranked 19^th in the world. In FT‘s 2021 Global MBA Ranking, CUHK MBA is ranked 48^th. CUHK Business School has the largest number of business alumni (40,000+) among universities/business schools in Hong Kong – many of whom are key business leaders.

More information is available at http://www.bschool.cuhk.edu.hk or by connecting with CUHK Business School on:

Facebook: www.facebook.com/cuhkbschool

Instagram: www.instagram.com/cuhkbusinessschool

LinkedIn: www.linkedin.com/school/cuhkbusinessschool

WeChat: CUHKBusinessSchool

#CUHKBusinessSchool

The issuer is solely responsible for the content of this announcement.

Hyped for the new Galaxy S22 series that was just announced by Samsung? With the multinational electronics corporation revealing the new line-up, M1 goes full throttle alongside the smartphone launch. Customers looking to get their hands on the next big flagship equipped with top-notch 5G compatibility and features from Samsung can leverage the exclusive pre-order period rolled out by one of Singapore’s leading digital network operators. Starting from February 17, 2022, at 9:00 AM SGT, customers can pre-order any of the 3 Samsung Galaxy S22 models – S22, S22+, and S22 Ultra 5G.

SINGAPORE – Media OutReach – 17 February 2022 – With the official unveiling of the Galaxy S22 series by Samsung, M1 Limited stays true to its promise of offering customers the opportunity to get the phone they want on their own terms. In addition to exclusive mobile plan promotions and hyper-personalised solutions, existing and new M1 customers can now purchase these revolutionary smartphones online and in-store. Accompanied by flexible Bespoke mobile plans available at unbeatable prices, fervent Android fans can own any of the 3 models in the line-up when the pre-order window goes live.

Epic Upgrades for Everyday Use

A year after the release of the Samsung Galaxy S21 5G series, the Samsung Galaxy S22 5G range will make heads turn with its revolutionary functions and notable design upgrades. Featuring Samsung Galaxy S22, Galaxy S22+, and Galaxy S22 Ultra, the series boasts swanky colours such as Phantom Black, Phantom White, and Green. The Galaxy S22 and S22+ models also come in Pink Gold, while the S22 Ultra 5G is available in a unique Burgundy tone.

Presenting enhanced camera quality with its Galaxy Pro-Grade multi-camera system, its intelligent battery capabilities, and faster display refresh rates only add to its ability to deliver performances unlike any other. Every photographer’s dream, the S22 and S22+ 5G boasts a rear camera setup featuring a 12MP Ultra Wide, 50MP Wide-angle, and 10MP Telephoto camera. The Samsung S22 Ultra 5G comes with massive pixel sensors in addition to its 12MP Ultra Wide, 108MP Wide-angle, 10MP 3X and 10MP 10X Optical Zoom Telephoto cameras on the back. Also built with a new 5G-compatible chipset to support hyper fast True 5G speeds, the new Galaxy S series pushes the limits of smartphone technology at mind-blowing proportions.

All the Power & Freedom You Can Carry

With M1, customers can leverage the selection of Bespoke plans for optimal flexibility. Boasting all 3 Samsung Galaxy S22 models, Samsung fans can choose either the Bespoke Flexi and Bespoke Contract plans to enjoy upfront payments as low as $0 and instalment periods between 12 to 36 months, all with no hidden fees. In addition to the range of mobile add-ons, to experience the wonders of high-speed connectivity, customers can subscribe to the 5Go Plus Booster pack to lead their digital life at True 5G speeds.

Hold the Galaxy in Your Hands with M1 Today

Pre-order for the new S Series launch, along with fantastic perks, will open to existing and new subscribers on February 17, 2022. Head online for exclusive pre-order access today before availability on March 4.

About M1

M1, a subsidiary of Keppel Corporation, is Singapore’s first digital network operator, providing a suite of communications services, including mobile, fixed line, and fibre offerings to over two million customers.

Since the launch of its commercial services in 1997, M1 has achieved many firsts – becoming one of the first operators to be awarded one of Singapore’s two nationwide 5G standalone network licences, being the first operator to offer nationwide 4G service, ultra-high-speed fixed broadband, fixed voice, and other services on the Next Generation Nationwide Broadband Network (NGNBN).

M1’s mission is to drive transformation and evolution in Singapore’s telecommunications landscape through cutting-edge technology and its made-to-measure offerings. For more information, visit www.m1.com.sg

Facebook: https://www.facebook.com/m1limited

LinkedIn: https://www.linkedin.com/company/m1-limited

Instagram: https://www.instagram.com/m1.sg

Twitter: https://twitter.com/m1singapore

#M1

The issuer is solely responsible for the content of this announcement.