On November 29, the “2020 China (Wuhan) Industrial Internet Summit”, one of the theme summits of the 2020 Global Digital Trade Conference, was held at Wuhan Zhuoer Marriott Hotel. During the interactive opening round table, Wei Zhe, former CEO of Alibaba and founding partner and chairman of Jiayu Fund, said,Industrial Internet companies should first become product-based enterprises.

Wei Zhe said that China's digital economy is at the forefront of consumer applications in the world. Health codes, e-commerce shopping, entertainment activities, and the country's 4G and some 5G networks are unobstructed. This is one of the important reasons why China's success in fighting the epidemic is very important. The pandemic has forced all enterprises to go online. “Increasing the layout of the industrial Internet is a matter of course.”

Wei Zhe stressed that there are three core elements in the valuation of industrial Internet companies. The importance is ranked as follows: first, high repeatability, sustainable cash flow, and high willingness of customers on the platform to renew and renew contracts; second, high gross profit margins; and third, high growth. If an enterprise maintains rapid growth in all three indicators, then the higher the investment value of the company's listing.

Wei Zhe said that on the industrial Internet circuit, product-oriented, service-oriented, and transactional enterprises should not have parallel relationships; all enterprises should first become product-oriented enterprises. The most important thing is to complete the digitization of every participant in the industrial chain. “If an enterprise product is like a plug-in and is used by all upstream and downstream participants, then the enterprise can naturally structure platform attributes.” he said.