BOTO Co, the winner of the Enterprise Trophy in last year's DHL-South China Morning Post Hong Kong Business Awards, shows off its achievement with pride. The awards logo is proudly displayed on its letterhead alongside a picture of the company's main product, Christmas trees. For Boto is the world's leading manufacturer of artificial Christmas trees, with a 35 per cent market share. Michael Kao, Boto's founder and managing director, said of the win last year: ''We were all a bit surprised, for while we are considered as the world's leader in the Christmas tree manufacturing sector, we were excited to realise that our achievements were also recognised by businessmen in other industries.'' It may seem that there is a limit to what can be done with plastic Christmas trees. But the company has several ideas for growth, including new products such as a tree with its lights already fitted - for those who find the decorating task more tedious each year - and expansion of its manufacturing facilities. It is in talks with merchant banks about a listing on the Hong Kong stock exchange within the next year. The financial year ending last March saw ''a remarkable increase in profit growth'', Mr Kao said. Although sales had shown only a five to six per cent increase, net profit had doubled, largely because of cost-cutting and further moves to bring all manufacturing in house. As automation has been increased, Boto has cut the number of workers at its factory in Buji, Shenzhen, by 10 per cent to 4,500 for the March-to-October peak season. The company has also diversified its markets, adding Poland, Hungary and Russia to its export list. They join Australia, Europe and the US. As part of its diversification Boto has bought a controlling interest in a trading firm that imports and exports Christmas ornaments and decorations. In product expansion, the company has developed, for the busy executive, Pre-Lite Christmas trees, already fitted with lights. The company intends to continue making better trees - ''providing customers with the quality they need at the price they want'', said Mr Kao - and bringing in new products. Boto is discussing with the Shenzhen authorities the sale of a 300,000-square-foot plot next to its factory, where it wants to build more manufacturing and warehouse facilities. Construction would begin next year. The company is also working towards certification under quality standard ISO 9000, which it hopes to achieve within two years.
