Beijing Enterprises Holdings, the brewery-to-infrastructure conglomerate unit of the municipal government, aims to more than double its annual waste-water treatment capacity within five years and raise its brewery capacity 70 per cent by 2015. It also expects to maintain fast growth in the gas distribution business by expanding sales in the capital's suburbs, as well as in nearby provinces through its joint venture with oil and gas giant PetroChina. The company aimed to raise its annual sewage treatment capacity to at least 10 million tonnes in three to five years from five million tonnes next year and 3.6 million tonnes now, said vice-chairman Zhang Honghai (right). It has signed contracts on projects involving capacity of 1.77 million tonnes, with a further one million tonnes under negotiation. For the brewery business, the company has set a target for output to reach eight million tonnes by 2015 from 4.7 million tonnes this year. Beijing Enterprises posted an 11.3 per cent year-on-year rise in first-half net profit to HK$1.42 billion yesterday as revenue climbed 21.2 per cent to HK$11.63 billion. Net profit from gas distribution rose 22.8 per cent to HK$1.04 billion, accounting for about 73 per cent of the total. This was thanks to a 14.9 per cent jump in sales volume to 2.86 billion cubic metres (bcm) at its wholly owned operation and a 19 per cent rise to 6.96 bcm at its 40 per cent-held joint venture with PetroChina. Brewery net profit surged 39.4 per cent to HK$172.1 million on the back of a 14 per cent rise in sales of its Yangjing brand beer to 2.34 million tonnes and appreciation of the yuan. Water treatment net profit rose 26.8 per cent to HK$118.95 million. Vice-chairman Zhou Si said the joint venture with PetroChina is scheduled to complete the 12 billion yuan, 16 bcm-a-year third gas pipeline linking gas fields in Shaanxi province to Beijing by the end of 2011. It will add to the 19 bcm capacity of the first and second pipelines.