NOTES TO THE CONSOLIDATED FINANCIAL  STATEMENTS  (RMB AND US$ AMOUNTS EXPRESSED IN THOUSANDS, EXCEPT PER SHARE DATA)  1.  Corporate information (cont’d) 1.4  Investment in HL Global Enterprises Limited (cont’d) On April 4, 2012, the Group converted 13,957,233 of Series A redeemable convertible preference shares (“Series A  RCPS”) into ordinary shares in the capital of HLGE. As of December 31, 2012, the Group’s interest in HLGE increased  from 49.4% to 50.1%, based on the total outstanding ordinary shares of HLGE, net of the ordinary shares held by the  Trustee under the Trust. As of December 31, 2013, the Group’s interest in HLGE remained at 50.1%, based on the total outstanding ordinary  shares of HLGE, net of the ordinary shares held by the Trustee under the Trust. As of December 31, 2012 and 2013, four directors, including the chairman, out of eight directors on the board of HLGE  were appointed by the Group. The consolidated financial statements of the Group have been prepared in accordance with International Financial  Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The consolidated financial statements have been prepared on a historical cost basis, except for derivative financial  instruments, held for trading investment and available-for-sale financial assets that have been measured at fair value.  The consolidated financial statements are presented in Renminbi (“Rmb”) and all values are rounded to the nearest  thousand (“Rmb’000”) except when otherwise indicated. The consolidated financial statements comprise the financial statements of the Company and its subsidiaries  as at December 31, 2013. Control is achieved when the Group is exposed, or has rights, to variable returns from its  involvement with the investee and has the ability to affect those returns through its power over the investee.  Specifically, the Group controls an investee if and only if the Group has: 2.2  Basis of consolidation 2.1  Basis of preparation 2.  Basis of preparation and accounting policies China Yuchai International Limited | Annual Report 2013 37 When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant  facts and circumstances in assessing whether it has power over an investee, including: l The Group’s voting rights and potential voting rights l Rights arising from other contractual arrangements l The contractual arrangement with the other vote holders of the investee l The ability to use its power over the investee to affect its returns l Exposure, or rights, to variable returns from its involvement with the investee, and l Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the  investee)