The board of directors of NagaCorp Ltd. announced clarification in respect of certain minor and one-sided inaccurate media reports concerning the labour dispute leading to an illegal gathering of some 500-700 employees on 9 January 2020 in Hun Sen Garden situated in front of NagaWorld Complex. The dispute began on 16 September 2019 when a small group of the employees of the Group gathered illegally in the AEON Mall 1 in Phnom Penh. On 16 September 2019, a small group of the employees of the Group who are members of the Labor Rights Supported Union of Khmer Employees of NagaWorld held a meeting at AEON Mall 1 in Phnom Penh with a view to inciting the employees of the Group not to work during the Pchum Ben Holidays which fell on 27, 28 and 29 September 2019. On 20 September 2019, Ms. Chhim Sithar, who is the president of the NagaWorld Union was suspended as a result of alleged breach of the Group's rules and regulations. On 25 September 2019, the NagaWorld Union submitted a written letter requesting the following four demands: Reinstatement of the NagaWorld Union President who has been suspended with full pay pending investigation, Working on national holidays on voluntary basis, Termination of a foreign casino operation manager, Demand for increase in monthly salary of certain group of employees. The NagaWorld Union demanded to adjust the minimum wage to USD 300 (for hotel employee) and USD 500 (casino employees). The Group pays high wages and fringe benefits to its employees. The Group believes that the salary is one of the best and if not the highest in Cambodia. The lowest monthly take home pay (which include service charge, tips and allowance) for entry-level hotel and casino employees are USD 270 and USD 385, respectively. For example, besides giving cash bonus and other fringe benefits, have recently implemented a language incentive program, unlimited meals, and NagaMart which enables all employees enjoy savings on household goods. On 26 September 2019, the Ministry of Labour requested a meeting between the Group and the NagaWorld Union for reconciliation, but the NagaWorld Union denied such request. On 7 October 2019, a reconciliation meeting was held at the Ministry of Labour. The disputes are not reconciled and resolved. On 18 October 2019, second reconciliation meeting was held at the Ministry of Labour, but the NagaWorld Union walked out of the meeting, and disputes remain not reconciled and resolved. This shows that there is no willingness from the NagaWorld Union to have amicable discussion with NagaWorld to resolve these matters in accordance with the applicable legal proceedings. As a result, in accordance with the Cambodian Labour Law, the Ministry of Labour refers the disputes to the Arbitration Council as per the Cambodia Labour Law and related legal procedures. In resolving these demands raised by the NagaWorld Union, the Group has followed relevant legal proceedings in good faith by attending all the meetings during reconciliation by the Ministry of Labour. On 7 November 2019, the Group and the NagaWorld Union attended the Arbitration Council Hearing to consider the three collective disputes. But the NagaWorld Union refused to proceed, unless the reinstatement of the NagaWorld Union President was considered as part of collective disputes, which request was denied by the Cambodian Arbitration Council. Except for the suspension of the NagaWorld Union President which was ruled by the Ministry of Labour as an individual dispute which was not referred to the Cambodian Arbitration Council for resolutions, the remaining three collective issues raised by the NagaWorld Union were resolved and closed pursuant to the Arbitration Award dated 15 November 2019. On 8 January 2020, upon legal advice obtained from HML Law Group & Consultants, the Group obtained a court injunction from the Phnom Penh Municipal Court, which ruled that the planned employees' strike on 9 January 2020 shall be considered as an illegal strike and the employees who participate in the illegal strike will be considered as committing a grave offence. The Group observed that approximately 500-700 employees participated in an illegal gathering outside the NagaWorld Complex on 9 January 2020. On the same date, the Phnom Penh Court of First Instance issued a ruling order to investigate the strike and to take the necessary legal action against the employees who were involved in the illegal strike for violation of the court injunction. The Group has a strong workforce of approximately 8,200 employees at NagaWorld Complex. Furthermore, the Group has recently hired about 1,000 trainees as part of the new Executive Trainee Program to provide additional labour capital to the operation of the Group.