Incident: The company issued an announcement on the evening of December 12. The board of directors deliberated and passed the company's bill to terminate the retail business of home appliances and sale of assets, that is, to sell the company's inventory and non-current assets related to the home appliance retail business to Shandong Dazhong Electric Co., Ltd., an estimated price of 138 million yuan. At the same time, it was announced that an extraordinary general meeting of shareholders will be held on December 28 to consider the above matters. Comment: The divestment of home appliance assets progressed as scheduled, and the secure mobile phone business went light. In late July, the company promised to unswervingly push forward follow-up matters such as restructuring. At the end of September, it completed the cash merger and acquisition of Dejing Electronics, and the sale of assets related to home appliances will completely resolve the competitive issues that have plagued the company for a long time. In view of the company's announcement to hold a shareholders' meeting on December 28 to consider the matter, we expect to complete the asset divestment by the end of the year, in line with our previous judgment. Since then, the company has completely transformed into a secure and encrypted mobile phone solution provider. The secure and encrypted mobile phone industry will take off quickly. We judge that the market space for the demand for secure encrypted phones in the special industry alone is over 30 billion dollars. If the commercial market is taken into account, the market space is likely to double. Previously, there were three reasons why industry-related companies and product drivers were unable to rapidly expand the market: national demand was not implemented, there were no nationally produced secure encryption products, and no effective industrial alliances were found to promote it together. However, we judge that all three factors are now mature, and the secure and encrypted mobile phone industry will take off quickly. An encrypted mobile phone industry alliance has been formed with top companies in the industry, and Dejing's future performance is flexible. Dejing has formed a strategic alliance with Zhanxin, Zhongke Hongba, and Yuanxin Technology. At the same time, as Zhanxin's sole partner in the field of secure mobile phones, Dejing is responsible for project development and process design as a core member. The company has now received some orders from aerospace science and engineering, and the 1.4G private network mobile terminal project currently being laid out, the public-grade smartphone project in cooperation with Defshi Connect, and the public security system project are all expected to be launched quickly in the future. Since the profit margin of secure encrypted phones is much higher than that of ordinary phones, we believe that Dejing's performance will be very flexible in the future. We are optimistic about the company's subsequent development and maintain the “Highly Recommended - A” rating. We expect the net profit of Sanlian Trading Company for 16-18 to be 94 million, 124 million, and 205 million yuan, corresponding EPS of 0.37 yuan, 0.49 yuan, and 0.81 yuan. The current stock price of 17.99 yuan corresponds to PE 49 times, 37 times, and 22 times, maintaining the “Highly Recommended - A” rating. Risk warning: The promotion of secure encrypted phones falls short of expectations; systemic risk in the market.