U-Best Innovative Technology is positioning itself to capitalize on the burgeoning market for foldable smartphones. The company anticipates strong demand for flexible hard coating (HC) materials and is leveraging this technology in its optical film products. Having already commenced shipments, U-Best is engaged in discussions with additional clients, potentially unlocking new market opportunities.
While the broader smartphone market approaches saturation, foldable phones are viewed as a promising avenue for growth and innovation.
Apple's potential entry
Rumors suggest that Apple's inaugural foldable iPhone will reach the specification lock-in phase by the second quarter of 2025, with project initiation slated for the third quarter. Mass production is projected to begin as early as the fourth quarter of 2026. This device is expected to be positioned as the flagship model in the iPhone lineup, incorporating advanced AI capabilities.
Apple's anticipated entry into the foldable market is expected to generate significant market activity. U-Best has proactively expanded into high-tech industrial applications, developing proprietary HC materials specifically for foldable phones. These materials can be customized to meet client specifications. With shipments already underway, U-Best anticipates robust growth in HC materials as the foldable phone market matures.
Venturing into AR optical films
U-Best is also utilizing its HC material technology to jointly develop AR optical film coatings with coating manufacturers. These coatings are primarily intended for handheld devices in industrial control and medical applications. Shipments commenced in late 2024. While revenue contribution is currently modest, the gross profit margins are substantial.
Nan-Hao Huang, president at U-Best, stated that the initial shipments of optical film coatings proceeded smoothly. The company is currently in talks with additional clients and anticipates further opportunities in the optical materials market.
Financial performance reflects strong momentum
U-Best Innovative Technology reported a consolidated revenue of NT$826 million for the fiscal year 2024, with a net after-tax profit of NT$65 million for the parent company. Consolidated revenue for February 2025 reached NT$114 million, a 116% increase month-over-month and a 253% increase year-over-year. Cumulative consolidated revenue for January and February 2025 totaled NT$213 million, a 134% increase compared to the same period in 2024.
U-Best attributes this growth to steady demand from the footwear, textile, and environmentally friendly water-based product sectors. The global sports brands' aggressive promotion of sporting events and marketing campaigns has further fueled demand. Nike's announcement of the 2025 After Dark Tour women's race series is expected to increase demand for high-performance shoe materials, boosting shipments of sports-related products such as shoes and performance apparel.
U-Best is also actively integrating the resources of its subsidiaries, Hsin-Li and Poly Leather, to deepen its involvement in environmentally friendly water-based PU resins and high-solids water-based solvents, aligning with the global trend toward sustainable materials.
Outlook for 2025
U-Best maintains a cautiously optimistic outlook for 2025. The company will collaborate with key clients to develop innovative materials, including bulletproof fibers, environmentally friendly water-based resins, and solvent-free resins. Shipments of bulletproof fibers are steadily increasing, and related new products are undergoing validation, which is expected to drive further revenue growth.
Additionally, U-Best is collaborating with its subsidiary to develop metal-colored dyes specifically for athletic shoes, expanding its product applications to meet the demands of the high-end footwear market.
Source: Compiled by DIGITIMES, March 2025
Article translated by Sherri Wang and edited by Jack Wu
