(Yicai) Jan. 15 -- China's Honor today refuted rumors claiming Chief Executive George Zhao is leaving the budget phone brand.

An insider from the Shenzhen-based firm told Yicai that Zhao continues to work at Honor, with no internal announcements regarding any position changes.

Recent online posts claimed that Zhao would be departing Honor along with the entire team behind the Magic 7 series, which launched late last year.

However, Zhao remained active on social media last night, sharing Honor-related news.

Honor is at a critical juncture following the completion of its shareholder restructuring. On Dec. 28 last year, Honor announced the completion of this transformation and indicated it would consider initiating an initial public listing process when appropriate.

In late 2020, Chinese tech giant Huawei Technologies spun off Honor to avoid sanctions targeting the telecoms firm. A consortium of over 30 companies, including a Shenzhen state-owned enterprise, acquired the budget brand and appointed Zhao as CEO.

Last year, Honor completed at least four rounds of financing, attracting several prominent investors, including China Mobile, China Telecom, CICC Capital, China Reform Holdings, and an SDG Group fund. According to corporate information platform Tianyancha, Honor currently has 23 shareholders, including state-owned capital and supply chain providers.

The company has faced rumors of management changes over the past few years.

In November 2023, Wu Hui, former chairman of water supplier Shenzhen Water and Environment Group, joined Honor as chairman, while former chairman Wan Biao transitioned to vice-chairman. Last September, Wan resigned for "personal reasons," stating he would dedicate more time to his family.

At that time, Zhao affirmed he would not follow suit, maintaining his positions as director and CEO.

Editor: Emmi Laine