Proactive strategic hedging. GUAN’s proactive hedging strategy aims to safeguard margins in the forward selling mechanisms. Grinders would typically (note: depends on how the book is being managed) be in a long bean position and will dip into the futures/forward/options market to hedge and cover the position, which resulted in the company’s huge marked-to-market loss in FY23 (should translate into higher revenue in the future) due to the surge of bean prices. Given the great volatility in the bean prices and extensive margin costs, management has strategically shifted a substantial amount of its cover to options (both call and put), which should result in manageable marked-to-market loss (if not gain) in 1Q24F.