JD.com, one of China's leading e-commerce companies, reported its financial results for the third quarter of 2023.

Net revenues for the third quarter of 2023 were RMB 247.7 billion. Revenue growth did experience a slowdown, expanding by 1.7% year-over-year to RMB 247.7 billion compared to 7.6% growth in the previous quarter. This can be partly attributed to seasonality as the summer months had a negative impact on the electronics and home appliance segment. Overall, the revenue growth slowdown was not significant. 

While net product revenues decreased slightly by 0.9% for Q3, net service revenues increased by 12.7% compared to the same period in 2022.

JD recorded an EPS of RMB 0.83 in Q3, which is an increase from RMB 0.44 in the previous quarter (Q2). This improvement reflects the benefits derived from ongoing efficiency improvements, which have finally translated into the company's bottom line. 

JD.com's non-GAAP income from operations increased by 11.8% to RMB 11.1 billion for the third quarter of 2023, and non-GAAP EBITDA grew by 12.4% to RMB 12.9 billion. The company's diluted net income per ADS (American Depositary Share) also rose significantly, increasing by 40.3 % to RMB 5.00 compared to the third quarter of 2022.

Income from operations also saw growth, reaching RMB 9.3 billion for the quarter, compared to RMB 8.7 billion in the previous year. Operating margin for JD Retail was maintained at 5.2%, the same level as the third quarter of 2022. 

The decline in general merchandise revenue narrowed compared to the previous quarters, indicating signs of an improving economic backdrop.

JD.com witnessed positive trends in user shopping behavior, particularly among JD Plus members. Like Amazon Prime, JD Plus members showed double-digit growth and demonstrated strong loyalty. During Q3, the annual average revenue per user for Plus members was eight times that of non-Plus members, showcasing the success of the company's user experience investments. 

New business remained a drag on overall revenue as JD.com scaled back its international operations. The sales in the new business segment declined by 24% during the quarter. This decline was expected as the company focuses on strengthening its core offerings instead of pursuing more ambitious growth efforts. 

JD.com announced that Ms. Sandy Ran Xu, the CEO of JD.com, will concurrently serve as the CEO of JD Retail, the retail segment of the company. Mr. Lijun Xin, the former CEO of JD Retail, will take on a different role within the company. 

Overall, JD.com's financial results for the third quarter of 2023 demonstrate positive developments, such as improving earnings, user shopping behavior, and loyalty among JD Plus members. While revenue growth slowed, it was largely influenced by seasonality, and the decline in general merchandise revenue has begun to narrow, indicating a potential recovery. JD.com's prioritization of its core offerings and efficiency improvements is expected to drive further growth and financial performance in the coming quarters.