Financial Performance - The total revenue for the fiscal year 2019 decreased by 18.93% to RMB 1,487,129,114.80, compared to RMB 1,834,487,601.95 in 2018[30]. - The net profit attributable to shareholders decreased by 45.39% to RMB 107,023,458.97, down from RMB 195,992,114.49 in the previous year[30]. - The decline in revenue was primarily due to a reduction in project wins, leading to decreased sales in system integration and smart terminal products[30]. - The total revenue for the year ended December 31, 2019, was approximately RMB 1,487,129,114.80, representing a decrease of about 18.93% compared to the previous year, primarily due to a reduction in project bids leading to decreased sales in system integration and smart terminal products[55]. - The gross profit margin for the year ended December 31, 2019, was approximately 26.85%, consistent with the same period last year[56]. - The net profit attributable to the parent company's shareholders for the year ended December 31, 2019, was approximately RMB 107,023,458.97, a decrease of 45.39% compared to the same period last year, primarily due to a decline in revenue and an increase in financial expenses[59]. Dividend and Shareholder Matters - The board recommended not to declare a final dividend for the year ended December 31, 2019, due to the impact of COVID-19 and market uncertainties[31]. - The board recommended not to declare a final dividend for the year ended December 31, 2019, compared to a dividend of RMB 0.1 per share in 2018[132]. - The company’s major shareholder, Jiangsu Sanbao, directly holds 397,821,000 domestic shares, representing approximately 50.22% of the total issued share capital[143]. - The largest shareholder, Sanbao Group, holds 397,821,000 domestic shares and 4,310,000 H shares, representing approximately 50.77% of the company's registered capital[150]. - As of December 31, 2019, the total number of issued H shares was 229,500,000, and the total number of issued domestic shares was 562,558,500[163]. - The company has no existing major contracts with directors or supervisors that have significant interests as of the end of the year[156]. Operational Highlights - Significant progress was made in highway integration services and smart customs logistics during the year[32]. - The company successfully completed multiple key projects related to the cancellation of provincial toll stations on highways, despite tight schedules and high construction risks[36]. - The company introduced a new logistics supervision model called "Smart Eye" to enhance customs supervision efficiency and reduce clearance times[37]. - The company has signed and completed multiple projects related to the cancellation of highway toll stations, including the Shanghai-Nanjing Expressway and Suzhou Ring Expressway, focusing on ETC gantry system integration[90]. - The company is actively developing smart traffic management systems, with ongoing projects such as the Suzhou Industrial Park Phase II and Tianfu New Area Meishan Innovation Center, enhancing its capabilities in urban intelligent traffic solutions[93]. Strategic Focus and Future Plans - The company focused on core business and organizational evolution to enhance customer value and satisfaction[32]. - The strategic goal for 2019 was to maintain steady growth in smart city, smart logistics, and intelligent transportation sectors[32]. - The company plans to enhance its strategic business layout in the Internet of Things (IoT) solutions sector, aiming to expand new customer bases and develop new products[47]. - The company aims to push forward the smart water management market and expand its business in highway overload management, targeting breakthroughs in the roadside market of the Internet of Vehicles[47]. - The company will increase investment in the development of video stream technology systems for customs logistics, including container identification and inspection systems[47]. - In 2020, the company plans to focus on smart transportation and smart logistics, leveraging IoT and Internet+ technologies to build a smart city ecosystem[99]. Research and Development - The company was selected for the "High-Quality Improvement Plan for Enterprise R&D Institutions," indicating recognition of its R&D capabilities and commitment to innovation[41]. - The company has been involved in the development of national standards for the Internet of Things, including the GBT 36478.4-2019 standard, which was officially implemented on March 1, 2020[97]. - The company has received recognition as an outstanding "Jiangsu Province Enterprise Technology Center" and has filed for 6 invention patents and 39 software copyrights during the reporting period[98]. - The company plans to strengthen technology research and development investment and improve core technology protection and management[126]. Risk Management and Compliance - The company faces risks related to macroeconomic conditions and fixed asset investment growth, which could negatively impact performance if there is a slowdown[126]. - The company emphasizes compliance with laws and regulations, ensuring continuous adherence to legal requirements and maintaining good relationships with regulatory authorities[129]. - The company has a well-defined internal control system to mitigate management risks and enhance operational efficiency[126]. - The company has strengthened its internal governance measures to comply with the corporate governance code as per the listing rules[190]. Employee and Governance Matters - The total employee compensation cost for the group was approximately RMB 64,047,722.15, down from RMB 71,451,611.05 the previous year, with a total of 306 employees[89]. - The company reported a significant focus on employee development, providing competitive compensation and training resources to enhance performance and self-fulfillment[130]. - The board of directors includes both executive and non-executive members, ensuring diverse governance[136]. - The board held a total of 11 meetings during the year, with 2 being regular meetings[200]. - All independent non-executive directors confirmed their independence according to the listing rules[197]. Corporate Social Responsibility - The company was included in the national list of key guarantee enterprises for COVID-19 prevention and control, highlighting its commitment to leveraging IoT technology in response to the pandemic[52]. - The company will publish its Environmental, Social, and Governance (ESG) report within three months after the annual report[191].

Financial Performance - The total revenue for the six months ended June 30, 2019, was RMB 816,952,108.91, a decrease of approximately 5.10% compared to the same period last year[5]. - The net profit attributable to the owners of the parent company for the same period was RMB 93,769,545.92, down about 5.57% year-on-year[5]. - The basic earnings per share for the six months ended June 30, 2019, was approximately RMB 0.118, compared to RMB 0.125 for the same period in 2018[5]. - Total operating revenue for the six months ended June 30, 2019, was RMB 816,952,108.91, a decrease of 5.1% compared to RMB 860,887,967.66 in 2018[23]. - Total operating costs decreased to RMB 719,752,331.77 from RMB 744,331,462.06, reflecting a reduction of 3.3%[23]. - Net profit attributable to the parent company was RMB 88,796,485.09, down from RMB 100,493,071.26, representing a decline of 11.6%[26]. - The total profit for the six months was RMB 107,608,603.61, down from RMB 119,753,083.90, reflecting a decrease of 10.5%[26]. - The company reported a decrease in comprehensive income of RMB 93,769,545.92 during the period[39]. - The company reported a net profit attributable to shareholders of RMB 93,769,545.92 for the first half of 2019, down from RMB 99,304,107.15 in the same period of 2018[68]. Assets and Liabilities - The total current assets as of June 30, 2019, amounted to RMB 3,593,730,471.99, slightly down from RMB 3,656,893,115.15 as of December 31, 2018[11]. - The total liabilities as of June 30, 2019, were RMB 2,746,450,372.13, compared to RMB 2,730,699,861.35 as of December 31, 2018[19]. - The total assets as of June 30, 2019, were RMB 4,835,061,931.81, an increase from RMB 4,811,691,619.32 as of December 31, 2018[19]. - The total equity at the end of the reporting period was RMB 2,088,611,559.68, showing a slight increase from RMB 2,080,991,757.97 at the beginning of the year[35]. - The company's total liabilities increased, reflecting a rise in financial expenses and accounts receivable[55]. - The company's debt ratio decreased to 32.78% from 38.33% as of December 31, 2018, due to increased bank loans for project procurement[99]. Cash Flow and Financial Management - Cash flow from operating activities generated RMB 120,097,470.91, a significant improvement compared to a negative cash flow of RMB -510,615,885.05 in 2018[32]. - The company reported a net increase in cash and cash equivalents of RMB 72,235,690.64, contrasting with a decrease of RMB -160,749,872.38 in the previous year[32]. - Cash and cash equivalents increased to RMB 613,604,783.89 from RMB 532,958,036.92 as of December 31, 2018[11]. - Total financial expenses for the first half of 2019 amounted to RMB 31,951,075.98, an increase of 63.0% from RMB 19,594,742.20 in the same period of 2018[55]. - The company experienced a significant increase in financial expenses, with interest expenses rising to RMB 33,002,632.19 from RMB 18,071,560.02, an increase of 82.7%[23]. Research and Development - Research and development expenses were RMB 21,659,396.02, down from RMB 24,324,492.52, showing a reduction of 10.9%[23]. - Research and development expenses for the period were RMB 21,659,396.02, a decrease of approximately 10.96% as the group's R&D plans were concentrated in the second half of the year[85]. Market Strategy and Future Plans - The company plans to expand its market presence and invest in new technology development in the upcoming quarters[40]. - The company continues to focus on R&D and market expansion strategies to enhance its competitive position in the industry[54]. - For the second half of the year, the company plans to focus on smart transportation and customs logistics, leveraging IoT and Internet+ technologies to innovate its business model[116]. - The company aims to provide customized solutions for traffic management departments by integrating advanced ITS technologies and data from various stakeholders in the transportation sector[120]. - In customs logistics, the company will continue to enhance project quality management and service levels to improve market reputation and explore new business opportunities[120]. Shareholder and Corporate Governance - The company directly holds 397,821,000 domestic shares, accounting for approximately 50.22% of the total issued share capital[124]. - The beneficial owner, Mr. Sha, directly holds 3,375,000 domestic shares and indirectly owns 60.40% of Jiangsu Sanbao, which in turn owns 100% of Sanbao Group[123]. - Mr. Chang indirectly owns 38.96% of Jiangsu Sanbao, which holds 100% of Sanbao Group, thus being considered as having rights to all 397,821,000 domestic shares[128]. - Active Gold Holding Limited owns 123,862,500 domestic shares, representing 15.64% of the total issued share capital[132]. - The company has fully complied with the corporate governance code as per the listing rules during the six-month period ending June 30, 2019[144]. - The major shareholder, Sanbao Group, is wholly owned by Jiangsu Sanbao, which is controlled by Tibet Zhuoxin and Tibet Zhuocai[136]. Changes in Management and Structure - Changes in the board of directors include the appointment of Ms. Yu Hui as executive director and vice president, and Mr. Niu Zhongjie as independent non-executive director[145]. - Mr. Chang Yong transitioned to non-executive director and is no longer vice president[145]. - Mr. Gao Lihui appointed as chairman of the audit committee, while Mr. Shen Chengji resigned from his position as independent non-executive director and chairman of the audit committee[150].

Financial Performance - For the fiscal year 2018, the total revenue of Nanjing Sample Technology Co., Ltd. increased by 6.85% to RMB 1,834,487,601.95, while the net profit attributable to shareholders decreased by 11.75% to RMB 195,992,114.49[15]. - The decline in net profit was primarily due to increased R&D investments and the previous year's gain from the sale of 82.61% equity in Jiangsu Cross-Border E-Commerce Service Co., Ltd.[15]. - The gross profit margin for the same period was approximately 28.13%, reflecting an increase of about 1.22% year-on-year[43]. - Sales expenses decreased by approximately 4.78% to RMB 41,886,685.67, attributed to increased self-media promotion reducing business advertising costs[44]. - Management expenses increased by approximately 11.32% to RMB 63,670,452.74, mainly due to higher personnel costs during the review period[45]. - Net profit attributable to shareholders of the parent company was approximately RMB 195,992,114.49, a decrease of 11.75% year-on-year, primarily due to increased R&D investment[46]. - The net profit margin decreased from 12.81% in 2017 to 10.61% in 2018, primarily due to increased R&D investments and the absence of investment gains from the sale of a subsidiary in 2017[57]. - The return on equity fell from 10.42% in 2017 to 9.26% in 2018, mainly due to a reduction in profits during the reporting period[60]. - The debt-to-asset ratio increased from 43.45% in 2017 to 56.75% in 2018, attributed to an increase in interest-bearing debt[61]. - The current ratio declined from 2.02 in 2017 to 1.65 in 2018, as the growth in current liabilities outpaced that of current assets[62]. - The quick ratio decreased from 1.38 in 2017 to 1.11 in 2018, reflecting similar reasons as the decline in the current ratio[63]. - The total employee compensation cost was approximately RMB 71,451,611.05 in 2018, up from RMB 63,012,940.37 in 2017, with the total number of employees increasing from 335 to 384[69]. - The distributable reserves as of December 31, 2018, amounted to RMB 990,758,260.44, a decrease from RMB 1,076,559,118.85 in 2017[143]. Strategic Goals and Business Development - The strategic goal for 2018 focused on enhancing customer satisfaction and developing core businesses, particularly in proactive security and smart customs integration[17]. - The company aims to transform into an IoT intelligent system integration supplier and big data service provider, emphasizing core business profitability and value creation[18]. - Future plans include providing comprehensive industry chain services around customs and enhancing service quality and standards in free trade zones[21]. - The group aims to establish a new supply chain main channel to connect its subsidiaries and external resources, focusing on high-quality development and user value creation[33]. - The group emphasizes the importance of building a strong front office to find customers and partners for high-quality development[33]. - The company plans to build a customer-centric organizational structure to improve revenue, net profit, and GMV targets[37]. - The company aims to maintain compliance with laws and regulations, ensuring a good working relationship with regulatory authorities[109]. - The company recognizes employees as its most valuable asset and strives to provide a supportive work environment and competitive compensation[110]. - The company plans to continue expanding its market presence and improving its main business revenue and market share[106]. Technology and Innovation - Nanjing Sample Technology successfully integrated IoT data collection terminals and intelligent information management platforms to build a public travel service ecosystem[20]. - The company assisted Nanjing Customs in successfully piloting the intelligent card system, significantly reducing customs clearance time[21]. - The group has successfully implemented the Jiangsu Province proactive safety intelligent control system, with over 43,000 vehicles online, resulting in a nearly 50% reduction in unsafe driving behaviors and a 40% decrease in vehicle violations[22]. - The group achieved an 80% reduction in direct economic losses due to the implementation of the safety system[22]. - The company actively participated in the national IoT standardization work, leading the development of a national standard for data interfaces, expected to be officially released in 2019[74]. - In 2018, the company applied for 16 invention patents and 56 software copyrights, and obtained 1 invention patent and 1 utility model patent authorization[76]. - The company plans to invest 100 million in research and development over the next three years to drive innovation[93]. - New product development includes the launch of a next-generation RFID system, expected to enhance operational efficiency by 30%[99]. Market Presence and Expansion - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[93]. - A strategic acquisition of a local tech firm was announced, which is expected to contribute an additional 200 million in revenue annually[93]. - The company will collaborate with top logistics, data, finance, and risk control experts to provide personalized digital services across the entire supply chain[82]. - The company will continue to rely on the national RFID system engineering technology research center for forward-looking and industry-common technology research[83]. Corporate Governance and Compliance - The company has strengthened its internal governance measures to comply with the corporate governance code as per the listing rules[161]. - The company has established a system and allocated resources to ensure ongoing compliance with applicable laws and regulations[109]. - The board is responsible for approving the company's strategic plans, annual budgets, and major operational measures[170]. - The audit committee consists of three independent non-executive directors, ensuring compliance with the listing rules regarding financial management experience[191]. - The company confirmed its responsibility for preparing true and fair financial statements, selecting appropriate accounting policies, and applying them consistently[197]. - The company emphasizes the importance of diversity in its board composition to enhance governance standards[184]. Shareholding Structure - The company directly holds 397,821,000 domestic shares, accounting for approximately 50.22% of the total issued share capital[120]. - Jiangsu Sanbao Holdings Co., Ltd. owns 100% of Sanbao Group, which directly holds 397,821,000 domestic shares, also representing 50.22% of the total issued share capital[121]. - Mr. Sha directly holds 3,375,000 domestic shares and indirectly owns 60.40% of Jiangsu Sanbao, which leads to a total beneficial ownership of 401,196,000 domestic shares[119]. - The company’s major shareholders include Sanbao Group, Jiangsu Sanbao, and Tibet Zhuoxin, with significant control over the shareholding structure[126]. - The top five customers accounted for 42.95% of the total annual sales, with the largest customer contributing 11.10%[135]. - The top five suppliers represented 27.82% of the total annual purchases, with the largest supplier accounting for 10.04%[136]. Awards and Recognition - The group’s subsidiary, Nanjing Urban Intelligent Transportation Co., Ltd., was awarded as one of the "Top Ten Outstanding Enterprises with Craftsmanship Spirit" in China's intelligent transportation sector[26]. - The group is committed to enhancing brand influence and has received multiple awards for its contributions to smart transportation and logistics[26].