Instant noodle maker Tingyi (Cayman Island) Holding Corp has made a public apology for infringing listing rules, although the stock exchange has reserved the right to take further action as a result of the infringement. The company breached the rules by not disclosing connected transactions that involved a loan of nearly US$17 million to Taiwan-based unlisted parent Ting Hsin (Cayman Islands) Holdings Corp last year and an $18 million loan in the first four months this year. Ting Hsin spent about $8 million of the loan raising its stake in the company by 1 per cent by buying in the open market to about 68 per cent, with the average purchasing price at HK$1.4 a share. Tingyi closed yesterday two cents lower at 74 cents. 'I apologise for my negligence in not disclosing the connected transactions. I promise such transactions will not happen again,' chairman Wei Ing-chou said. Special assistant to the chairman Will Wang Kuei-ching said the loans had been repaid at an interest rate of 8 per cent and that Ting Hsin's financial status had been sound. The transactions were discovered by Tingyi's auditors preparing its results in the year to December. Attributable profit fell 46 per cent to US$42.76 million on turnover of $602.87 million, up 24.76 per cent. Operating profit fell 63.5 per cent to $24.95 million. Earnings per share dropped 47 per cent to 1.02 cents while the final dividend remained unchanged at 36 cents. Mr Wei said the poor results were attributed to a worse than expected performance at its bakery and beverage divisions, rising promotion expenses and depreciation charges on new production equipment. The bakery and beverage units each lost $14 million. 'We hope the division will generate profits in one or two years' time,' Mr Wei said. Tingyi planned to reduce its net debt to equity ratio of 89 per cent by selling shares to a strategic partner and off-loading non-core assets, finance manager Wu Wen-tsung said. Mr Wei said the company hoped to complete talks by the end of next month. He said Taiwan-based food company Wei-Chuan Foods Corp was one of the potential investors as Ting Hsin and Wei-Chuan were reportedly close to concluding an equity deal which would eventually involve Tingyi.