Crocodile Garments Limited announced that the Company and Lacoste Operations S.A. has had a dispute on an obligation under the Distribution Agreement and failed to reach a solution thereto. On 8 June 2021, the Company received a letter ("Letter") from LOSA alleging, among other things, that the Company had not fulfilled an obligation under the Distribution Agreement and LOSA had proceeded to terminate the Distribution Agreement. In this connection, the Company intends to rigorously defend its interests under the Distribution Agreement and any proceedings that may be brought by LOSA. The Company has instructed its legal adviser to issue letter to LOSA stating its position and asserting its rights under the Distribution Agreement to protect its interests in respect of the Lacoste Business. The Company is of the view that the subject matter of the Letter does not have a material adverse impact on the business operation and financial condition of the Group.