(Yicai Global) April 20 -- Shares in SEC Electric Machinery climbed after the motors manufacturer dismissed a report that its founder was caught jumping the fence of a competitor’s factory to try and steal trade secrets.

Its stock [SHA:603988] gained 6.4 percent to close at CNY9.62 (USD1.36) today after soaring almost 10 percent at the open this morning.

International Financial News reported yesterday that a security guard spotted Wang Jianyu, also president of the Jiangsu province-based firm, breaking into Huayong Electric Machinery’s plant and taking photos of its products with his phone. SEC Electric did not deny the report in a statement also published yesterday, but simply dismissed it as irrelevant.

Wang was not put in custody and has not been told he is being investigated, the company said, adding that he can carry out his duties as normal and apologized for any adverse impact his actions may have had on the firm.

Wang set up SEC Electric Machinery in 2003. He sold some of his equity last year to become its second-largest shareholder, according to public information. As of the end of September, he had a 22.5 percent stake. In January, the firm forecast that its 2019 net profit would nearly triple to CNY135 million (USD19 million) due to a surge in demand.

Editor: James Boynton