And this latest product launch that we have achieved with CPIC Hong Kong Life is a good testament of our continued innovation to provide the right products for the customers in our respective markets. And this month of first foray into the Hong Kong market with this product targeting Hong Kong customers and also new immigrants into Hong Kong from China, these 2 sets of customers are prime target customers for this product. And we do believe that would be the long-term trends of retirement demand from the Hong Kong residents in the Greater Bay Region. We believe that this product will address this market niche very precisely, and we do have a very strong anticipation for the sales of this new product with CPIC Hong Kong.
Operator: Thank you for your question. We’ll now taking the next question and the next question is from Mindy Gao for CLSA. Please go ahead. Your line is open.
Mindy Gao: [Foreign Language] Thank you for taking my question. This is Mindy from CLSA. My first question is about the gross margin trend. So I wonder how do you see the trend of gross margin in the second-half and the rationale behind? So my second question is about your overseas expansion plan. So can you share with us more color about where there is overseas expansion plan? And when do you expect to see a more meaningful revenue contribution from this part of the business? Thank you.
Ron Tam: Thank you, Mindy. It’s Ron here. Two questions. The first question on our gross margin outlook. I think we have been demonstrating that we have achieved cost efficiencies throughout our business lines. And as a result, our gross margin for the second quarter has improved by almost 4 percentage points from same period last year. I think we continued to strive to maintain gross margins at the current level through three main areas. One is we continue to have a very disciplined cost control on the marketing spend, on our customer acquisition channel cost. We have actually been quite stringent on our direct acquisition budgets. We have been quite focused on harvesting our existing customer base as well in terms of repurchases.
We have actually achieved more than 3% repurchase rate from our direct To-C business line in this quarter. So this demonstrates that we have been able to achieve premium growth from our existing customer base. And we balance that very carefully with new customer acquisition spend to attract new customers. Secondly, I think we continued to invest in the technology. And we have been also deploying more capital into AI efforts. I think we are expecting to yield efficiency enhancements again on many aspects of our business across the value chain. So that would be a second measure. And I think a combination of these measures and strategies will help us maintain our gross margins at the current level. So that will be the answer to your first question.
So the second question on overseas expansion. I think Hong Kong is the first destination in terms of our international strategy or expansion. Hong Kong is a natural extension for our Mainland China business because Hong Kong we do have a very good opportunity in the overall MCV business in the Hong Kong market. This is a HKD40 billion market pre-COVID and we expect that to be around 80% or 100% recovery this year. So as a major player in the mainland Chinese insurance brokerage industry, with the brand recognition that we have with many of the Hong Kong local residents, who have a linkage of mainland China, we believe that our brand equity was able to help us achieve a decent market share in the Hong Kong local market as well. So we’re targeting to become a top-tier broker in the Hong Kong market in the next three years and to achieve a meaningful market share, as well in the MCV business and also for the local Hong Kong market business.
