NOTES TO THE CONSOLIDATED FINANCIAL  STATEMENTS  (RMB AND US$ AMOUNTS EXPRESSED IN THOUSANDS, EXCEPT PER SHARE DATA)  1.  Corporate information (cont’d) 1.3  Investment in Thakral Corporation Ltd. (cont’d) On July 7, 2010, TCL made payment of cash distribution to shareholders pursuant to the Capital Reduction Exercise.  Subsequent to the cash distribution, the Group began to sell its shares in TCL in the market. As of December 31,  2010, 580,253,000 shares in TCL had been disposed of and the Group’s shareholding interest in TCL had reduced from  34.4% to 12.2%. In line with the decrease of the Group’s shareholding interest in TCL, the Group’s representation in the  board of directors of TCL also reduced to one out of eight directors on the board of TCL. As of December 31, 2010, the  Group did not exercise significant influence over the operating and financial policies of TCL. The Group’s investment  in TCL was classified as held for trading investment as they were held for the purpose of selling in the near term. The  Group’s investment in TCL was measured at fair value with changes in fair value recognized in other operating income/ expenses in the statement of profit or loss. In 2013, the Group further disposed of 116,284,000 shares in TCL in the open market at a total consideration of S$4.3  million, its shareholding interests in TCL decreased from 12.2% to 7.7% as of December 31, 2013. On February 7, 2006, the Group acquired 29.1% of the ordinary shares of HL Global Enterprises Limited (“HLGE”). HLGE  is a public company listed on the main board of the Singapore Exchange. HLGE is primarily engaged in investment  holding, and through its group companies, invests in rental property, hospitality and property developments in Asia.  On November 15, 2006, the Group exercised its right to convert all of its 196,201,374 non-redeemable convertible  cumulative preference shares (“NCCPS”) into 196,201,374 new ordinary shares in the capital of HLGE. Upon the issue of  the new shares, the Group’s equity interest in HLGE had increased to 45.4% of the enlarged total number of ordinary  shares in issue. During the year ended December 31, 2007, the Group did not acquire new shares in HLGE. However,  new ordinary shares were issued by HLGE arising from the third party’s conversion of NCCPS, and the Group’s interest  in HLGE was diluted to 45.4%. On March 26, 2010, the Group converted 17,300,000 of Series B redeemable convertible preference shares (“Series B  RCPS”) into ordinary shares in the capital of HLGE. On September 24, 2010, the Group further converted 16,591,000 of  Series B RCPS into ordinary shares in the capital of HLGE. Meanwhile, 154,758 of new ordinary shares were issued by  HLGE arising from third parties’ conversion of NCCPS. As of December 31, 2010, the Group’s interest in HLGE increased  from 45.4% to 47.4%. On March 24, 2011, the Group converted 17,234,000 of Series B RCPS into ordinary shares in the capital of HLGE. On  September 23, 2011, the Group further converted 17,915,000 of Series B RCPS into ordinary shares in the capital of  HLGE. As of December 31, 2011, the Group’s interest in HLGE increased from 47.4% to 49.4%. On January 13, 2012, HLGE established a trust known as the HL Global Enterprises Share Option Scheme 2006  Trust (the “Trust”) with Amicorp Trustees (Singapore) Limited as the trustee of the Trust (the “Trustee”) pursuant to  a trust deed dated January 13, 2012 entered into between HLGE and the Trustee (the “Trust Deed”) to facilitate the  implementation of the HL Global Enterprises Share Option Scheme 2006 (the “HLGE 2006 Scheme”). On the same date, the Group transferred 24,189,170 of Series B RCPS in the capital of HLGE, representing 100% of the  remaining unconverted Series B RCPS, to the Trustee for a nominal consideration of S$1.00 for the purpose of the Trust.  Pursuant to the Articles of Association of HLGE, the 24,189,170 of Series B RCPS held by the Trustee were converted into  24,189,170 new ordinary shares in the capital of HLGE on January 16, 2012, and the new ordinary shares which rank  pari passu  in all respects with the existing issued ordinary shares, were held by the Trustee under the Trust. As disclosed  in Note 3.1, the Trust, being a special purpose entity, has been consolidated in the separate and consolidated financial  statements of HLGE. 1.4  Investment in HL Global Enterprises Limited China Yuchai International Limited | Annual Report 2013 36