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].