Business news from Ukraine

Business news from Ukraine

Japan’s population has shrunk by 800,000 over year

The population of Japan noticeably decreased in 2022, while the number of foreigners living in the country increased to the highest level in the last 10 years, reports the Associated Press citing data from the Japanese Ministry of Internal Affairs and Communications.

According to its information, in 2022 the number of Japanese decreased by 800 thousand people, or 0.65% compared to 2021, and reached 125.41 million people by January 1, 2023. At the same time, the population of Japan fell for the 14th consecutive year.

Asssociated Press notes that for the first time since the collection of such data, the population has decreased in all 47 prefectures of Japan at once.

At the same time, the number of foreigners living in Japan increased – by 10.7%, and this is the highest population growth at the expense of newcomers since 2013. By now, the share of foreigners in Japan’s population is 2.4%.

After 2008, Japan’s population has been steadily declining due to a low birth rate. In the past year, the number of children born in the country was again extremely low – 771.8 thousand.

The current Government of Japan considers the problem of low birth rate to be one of the main issues that need to be addressed.

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“Energoatom” announces tender for motor vehicle liability insurance

On July 26, Energoatom (Kyiv) announced a tender for compulsory motor vehicle liability insurance for owners of land vehicles.

According to the Prozorro electronic public procurement system, the total expected cost is UAH 99.944 thousand.

The deadline for submitting documents for the tender is August 4.

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Sales of new buildings in United States in June decreased by 2.5%

Sales of new homes in the United States in June decreased by 2.5% compared to the previous month and amounted to 697 thousand in terms of annualized rate, the Ministry of Commerce reported.

According to the revised data, 715 thousand homes were sold in May this year, not 763 thousand, as previously reported.

At the same time, analysts on average expected a 5% decline in sales last month from the previously announced May level – to 725 thousand, according to Trading Economics.

Sales of new homes in June increased by 23.8% compared to the same month a year earlier.

The median price of a new home in the United States last month was $415.4 thousand, compared to $417.3 thousand in May and $432.7 thousand in June 2022.

The number of new buildings for sale at the end of June amounted to 432 thousand compared to 429 thousand a month earlier. At the current rate of sales, it would take 7.4 months to sell all new buildings in the United States, compared to 7.2 months in May. Experts traditionally believe that a six-month supply indicates a balanced market.

New real estate accounts for about 10% of the US housing market, but sales of new homes are registered immediately after the signing of the contract, which makes them a more relevant indicator of the market.

Wheat prices in Ukraine increased by 100-400 UAH/tonne over week

Food wheat in most regions of Ukraine is gradually becoming more expensive, for the week its price for 2 and 3 class amounted to 5500-6500 UAH/ton and 5400-6300 UAH/ton, which is by 100-400 UAH higher than last week’s figures, reports analytical agency “APK-Inform”.

“As of July 26, processors predominantly fix demand prices for wheat of 2nd and 3rd class within 5500-6500 UAH/tonne and 5400-6300 UAH/tonne SRT respectively, which is 100-400 UAH/t higher than the end of last week,” analysts noted.

According to their information, prices are supported by insufficient supply of grain of new harvest due to restrained sales by agrarians and slowdown of harvesting campaign in some regions of the country due to rains.

In addition, market participants often report that wheat of the new crop is closer to feed condition in terms of quality. Locally in the central region of the country there is an increased share of grain infected with sooty mold, which also affects the gradual rise in prices, stated APK-Inform.

IC “Guardian” has increased collection of gross premiums by 90,4%, net premiums – by 84,7%

Insurance company “Guardian” (Kyiv) has collected UAH 673,8 mln of gross insurance premiums in January-June 2023, that is by 90,4% more than in the same period a year earlier, reported the rating agency “Expert Rating”, which updated the insurer’s financial strength rating at the level of “uaAA” on the national scale following the results of the mentioned period.

It is noted that net premiums of the company for six months have increased by 84,7% – up to UAH 603,3 mln. Of them “Green Card” accounts for 63,19%, compulsory motor liability insurance – 22,9%, VHI – 4,99%.

The level of indemnities of IC “Guardian” following the results of the first half of 2023 compared to the first half of 2022 has grown by 10,27 p.p. and has amounted to 26,74%.

According to RA data, shareholders’ equity of the company as of June 30, 2023 has grown by 25,91% – up to UAH 248,71 mln, gross liabilities – by 88,88% – up to UAH 672,32 mln. The high growth rates of gross liabilities have led to decrease in the ratio between shareholders’ equity and liabilities of IC “Guardian” by 18,50 p.p.. Thus, as of the beginning of H2 2023 this indicator has amounted to 36,99% that indicates an acceptable level of shareholders’ equity coverage of the insurer’s liabilities.

The volume of cash and cash equivalents on the company’s accounts throughout the reporting period has grown by 29,85% – to UAH 188,098 mln, and the level of cash coverage of liabilities has decreased by 12,71 p.p., to 27,98%. – to 27,98%.

RA also informs that the financial results of the insurer have decreased in the reviewed period. In particular, following the results of the first half of 2023 the company has received an operating loss in the amount of UAH 5,88 mln, and its net profit has amounted to UAH 3,68 mln, that is by 92,44% less than the net profit for the first half of 2022.

At the same time RA notes that as of June 30, 2023 the insurer has formed a portfolio of current financial investments in the amount of UAH 171,62 mln, which consisted of OVDP and OZDP. Presence in the portfolio of investments in government bonds has positively influenced its provision with liquid assets, which in aggregate covered 53,5% of insurer liabilities.

The Agency notes that according to the statements provided by the insurer, IC “Guardian” has complied with the criteria and norms of solvency and capital adequacy, liquidity, profitability, quality of assets and riskiness of insurer operations established by the legislation.

IC “Guardian” is a member of the Presidium of the League of Insurance Organizations of Ukraine. Since January 2020 it has received the status of a full member of the ITSBU, has the right to sell “Green Card” policies.

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“Lubnymash” completes construction of elevator in Cherkasy region

An elevator with a total capacity of 24,000 tons of simultaneous storage is under construction in Cherkassy region, the press service of the contracting company Lubnymash LLC reported.

“Silos with a total capacity of 5,500 tons each and a diameter of 22 meters, having roof panels with GreenCoat® polymer coating from SSAB (RUUKKI), providing protection against corrosion for 50 years, are almost completely installed,” the contractor wrote on Facebook.

According to his information, the installation of one of the operational storage silos with a diameter of 5.5 meters and a capacity of 300 tons has already been completed. The second one is in the queue.

In addition, the installation of shaft type grain dryer U13-SSH50M2T with a capacity of 50 tons per hour (with removal of moisture from wheat from 20% to 14%), with full external insulation of the shaft on the alternative heat generator GRECO group has been completed.

Work has begun on transport equipment with a capacity of 100 tons per hour, in particular, 13 galvanized chain conveyors with a total length of 180 meters and 5 galvanized bucket-type belt elevators with a total height of 97 meters are being installed.

According to the company’s website, PE Lubnymash is a Ukrainian manufacturer and supplier of equipment for transportation, storage, processing of grain, grain products and other materials. The company sells its products under the Lubnymash and Lubnymash brands.

The company’s plant in the Poltava region has its own foundry, forging and painting facilities, two assembly shops, a mechanical shop, tool, welding and assembly and blanking areas, warehouses of materials and finished products.

According to the Unified State Register of Legal Entities and Individual Entrepreneurs, the ultimate beneficiary of the company PE Lubnymash is Maria Kudryk.

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