Petrochemical concern Yip's Hang Cheung (Holdings) made certain 'inappropriate business decisions' which left half the company's six divisions in the red last year. Executive director George Ng Siu-ping said divisions including petrochemical trading, lubricants-making and marketing and building contracting works generated a combined $11 million operating loss and helped push the group's attributable profit down almost 68 per cent to $17.08 million in the year to March from the previous year. Given the bleak economic outlook for Hong Kong, Mr Ng anticipated the divisions would continue to lose money in the year to next March. 'There were inappropriate business decisions. However, the decisions were based on our goal of promoting our paint products,' he said after the company's annual general meeting yesterday. Of the poor-performing divisions, building and contracting was hit by a $20 million bad debt last year on top of a $3.48 million operating loss. The chance of recovering the loan was virtually nil, Mr Ng said. 'The bad debt stemmed from a financially crippled contractor whose parent is undergoing liquidation,' he said. The group would fold the division once $10 million in remaining contracts had been completed in the next couple of years, he said. The contracts were largely maintenance works on buildings owned by the Government and the private sector, he said.