(Yicai Global) March 9 -- China Unicom, the country’s third-largest telecom service provider, said the firm will make its vehicle-to-everything unit a standalone company and take it public on Shanghai's Nasdaq-like Star Market.

China Unicom indirectly owns more than 69 percent of Smart Connection Technology and will remain its controlling shareholder after the spin-off, the Beijing-based telecom firm said late yesterday. An investment company under FAW Group, a state-owned Chinese carmaker, has an 11 percent stake in the V2X unit.

The financial and scheduling details of the spin-off have not been decided, China Unicom added.

Founded in 2015, Smart Connection has three business segments, including V2X connectivity, V2X operations, and technology innovation and application. It developed a fifth-generation vehicle-road cooperative service platform that can connect with several onboard and roadside devices and is compatible with 20 self-driving car models, according to its parent company.

Smart Connection had revenue of CNY808 million (USD116 million) in the 12 months ended Dec. 31, and a net profit of CNY100 million, China Unicom said. Its assets totaled 1.7 billion (USD240 million).

China Unicom's revenue rose 8.3 percent last year to CNY354.9 billion (USD50.9 billion), a nine-year high, its earnings report showed yesterday. Net profit jumped 15.8 percent to CNY7.3 billion (USD1.1 billion). The company will pay a dividend of CNY0.42 (6 US cents), including tax, for every 10 shares, it added.

Shares of China Unicom [SHA: 600050] finished 1.2 percent lower at CNY6 (85 US cents) each today. With its relatively low valuation and solid earnings results, the company’s stock has climbed about 80 percent since the end of October, reaching its highest point since September 2019.

Editor: Martin Kadiev