Sandy Xu: This is Sandy. I can add more color on the short-term trends. So as Xu Lei just mentioned, we are still facing some short-term challenges due to the COVID control measures. And also, we view the 20 new rules guiding COVID control policies to be very positive and constructive for the recovery of domestic supply chain and consumer confidence. But it will take some time to actually see the positive impact on consumption data, given the current situation. So in the short term, we recommend analysts to be more conservative in modeling the top line performance. But we are more confident in the long-term strategies and the growth next year. Specifically for JD Retail, yes, we see that the recircling of the COVID situation affects more regions in the country at this time.
And also, there are disruptions to logistics and fulfillment, resulting a decrease in the successful procurement rate as Xu Lei just mentioned as well as an increase in the order cancel or return rate compared to prior years. So the consumers also become more conservative or rational under the current macro environment. And in fact, the demand was good during the major promotions but softer before and after the promotion. So in Q4, we see that different categories performed differently. But in general, the essentials, daily necessity products performed stronger than the discretionary products. In particular, for apparels and other discretionary products remained relatively soft. So we are — the management team is paying more attention to operating quality this year, taking proactive initiatives, including making some structural adjustments to the SKUs or subcategories with heavy investments.
So we still have some negative impact on the short-term top line growth. But we believe it will build very good foundation for our long-term top line performance. So with all these factors considered, the category trend will continue in Q4 but may slow down a bit moderately from Q3. And then for JD Logistics, its organic top line growth will be similar in Q3 — to Q3 and the internal revenue will again be affected by the decrease of the orders of Jingxi business. And JD Logistics’ external revenue growth will significantly outpace that of the internal revenue again in the fourth quarter. Deppon was consolidated at the end of July. And it will contribute more to external revenue in Q4. On the New businesses segment side, so the revenue growth of Jingxi Pinpin will still be negative, will be adjusted for our overall revenue performance.
And international business strategy has also been adjusted and put in plan to improve the operating efficiency, and while our JD Property maintains a relatively high growth momentum.
Operator: Our next question comes from Eddy Wang with Morgan Stanley.
Eddy Wang: My question is that we have already witnessed a part of signal in terms of the COVID policy relaxation as well as the potential reopening in early next year. So I just want to hear your view that, assuming that this reopening will gradually to happen in next year, what kind of preparation or strategy changed in our — based on our current strategy in this year? And the follow-up question is that we have seen very strong margin improvement in terms of the JD Retail business and the other business. So if assuming that there will be a very strong recovery in terms of consumption next year, are we able to achieve both strong margin improvement together with the top line reacceleration? Or it will be a balance between the margin improvement with — and the top line growth?
