Fabric-maker Kwong Hing International Holdings has distributed a $30 million special dividend from inner reserves to its directors ahead of its float on March 19. The inner reserves will be replenished by $16 million net proceeds, more than half of the total $33 million from a share sale today. The sale will include 33.75 million new shares and 11.25 million existing shares priced at $1.20 each, in an initial public offering in which directors will cash in $13.5 million before expenses. The special dividend was distributed to the four Kwong Hing executive directors, also founders, siblings and shareholders, Rocky Li Man-ching, May Li Mei-lin, Li Man-shun and Michael Li Man-tak. They recommended no dividend for the year to March 31 this year. Michael Li said the special dividend was the first since Kwong Hing's business was founded five years ago. 'We spent the dividend funding the purchase of some properties held by the company,' he said. The directors bought nine properties valued at $65.77 million from Kwong Hing. This included four apartments worth $45.42 million that they are living in. The transaction will bring Kwong Hing a $11.3 million exceptional gain this year, which will be entailed part of an estimated net profit of $42.3 million. Regardless of the one-off gain, Kwong Hing will have a 19.04 per cent net profit rise this year from $26.04 million last year. Last year's net profit was up 47.61 per cent from $17.64 million in 1995 when it fell 37.2 per cent from $28.09 million in 1994. May Li attributed the inconsistent performance to soaring cotton prices and a huge expansion in production facilities in 1995. 'This year's profit will not see a big jump since new machinery will be added after this fiscal year,' she said.