This subsidiary has been losing money for two consecutive years. Why should the parent company invest heavily?

First, the project scale of the subsidiary company is large, the parent company continues to implement the original investment plan, and the breakeven point of the loss factor company has not yet been reached;

Second, for the new strategic layout of the company, subsidiaries must break through the competitive pattern through investment, and the losses are caused by the expenses of research and development and market of subsidiaries;

Third, there is a new situation in industry competition, and the original planned investment is relatively small. Only by continuous investment can we avoid the early investment becoming sunk cost;

Fourth, the subsidiary has more important related interests, and the parent company can't bear to let the children get away with it.