The gas division, composed largely of Beijing Gas Group, was the top earner, generating a net profit of HK$1.82 billion last year. Gas sales rose 16.4 per cent to 5.69 billion cubic metres while gas revenue leapt 17.6 per cent to HK$11.94 billion.

Beijing Enterprises chairman Wang Dong said it would invest more in the country's capital by expanding its gas pipeline network to 10 suburban areas, including the Miyun and Huairou districts.

Beijing Gas is the dominant supplier of natural gas in the capital.

To improve air quality and living standards in the capital, the Beijing municipal government is studying the feasibility of transforming three coal-fired power plants into natural gas-fired facilities.

Wang expects the move to lift the demand for the cleaner burning fuel.

In another major sector, beer, Wang forecast that as Beijing spurs domestic spending, the group's flagship product, Yanjing Beer, will expand its market share further.

The brewery division sold 11.45 per cent more beer, well above the industry's average growth of 7 per cent, and sales revenue grew 15.2 per cent to HK$9.75 billion. Yanjing Beer said it holds 85 per cent of the Beijing market. That was a major factor in the 62 per cent growth in the net profit of the brewery division, to HK$341 million, last year.

Yanjing Beer enjoyed a more favourable income tax rate of 15 per cent compared with the previous 25 per cent after the government certified the brewery as a hi-tech-driven operation.

The group's final dividend was raised 12.5 per cent to 45 HK cents per share, taking the full-year payout to 65 HK cents. The total dividend was the same as in 2008 when there was a special dividend of 5 HK cents per share.

The special dividend was not repeated last year.

Beijing Enterprises shares rose 35 HK cents, or 0.65 per cent, to HK$53.95 yesterday before the results announcement.