Boto International Holdings is planning to expand its leisure furniture business with a view of spinning it off, according to a company official. Boto's immediate aim was for the furniture to account for 7 per cent of revenue next year, up from 2.9 per cent at present, chairman Michael Kao Cheung-chong said. Artificial Christmas trees and festive products are the company's mainstay, accounting for more than 97 per cent of turnover last year. Mr Kao said it would be between three and five years before its furniture operation was spun off, and the precise timing would depend on market conditions. Speaking after the annual general meeting yesterday, Mr Kao said the company received a good response for its furniture at a recent Chicago trade show and expected large orders soon. Deputy managing director Philip Lam Pak-kin said as of August, orders on hand for its artificial Christmas trees were approaching $700 million, almost equal to turnover for the year to March 31. Mr Lam said turnover this year would grow by more than 30 per cent, boosted by increased prices and sales of Christmas trees. The company has invested US$3 million in PVC rigid sheet equipment to meet expected growth in sales. Once in operation next year, the company's annual output will increase by about 30 per cent to 6,000 tonnes. Mr Kao said additional capacity would be used to manufacture PVC products for external clients, such as PVC sheets for credit card makers. Boto's net profit grew by 24.4 per cent to $120.28 million in the year to March 31 from the previous year, while turnover rose 6.8 per cent to $710.74 million.