Under normal circumstances, the company will lose money every year, but it is difficult to close down, mainly for the following reasons: First, make up for the current losses with past profits. I once knew an entrepreneur. More than a decade ago, the annual sales of this enterprise was 500-600 million, the net profit was 500-600 million, and the boss also made a lot of money. Loss from 20 13. Because the bidding project of conveyor belt of state-owned enterprises is not easy to get, this private enterprise can only get some spare parts or do conveyor belt business. It has been losing money until today, and it has not gone bankrupt for seven years. The reason why the enterprise didn't go bankrupt is that on the one hand, the boss laid off employees drastically and reduced expenses, on the other hand, the money earned in previous years was used to make up for the losses of the enterprise, which made the enterprise barely survive.
Second, some modern emerging enterprises also lose money every year, but they have never closed down. In the past two years, * * * likes cycling, such as mobike and OFO. These cycling companies have never made a profit since their establishment, and they are losing money every year. The main reason is that they have obtained billions of dollars in financing such as A, B and C rounds, and these companies can only operate normally if they throw money at major shareholders. Shareholders are willing to burn money for these companies, mainly in the hope that these companies will be profitable in the future and be able to go public, regardless of whether they are unprofitable for a long time. Some internet companies, desperate for financing, desperate for expansion, desperate for money, win or not doesn't matter. As long as you make the scale the first echelon (the top few) in the industry, there will be venture capitalists who will continue to invest money for you.
Third, some internet companies are profitable, but these profits are used for the long-term development of the company, so they are also losing money, and their investors do not have much objection to this in the short term. The best examples are Meituan and Hungry. The previous losses were mainly due to a large amount of subsidies to riders. If you don't want to lose money, you should give the rider less subsidies. In this case, although the take-away company lost money on its books, it can turn losses immediately with a little effort.
In addition, there are domestic e-commerce companies, and Liu has been at the helm for so many years and has been at a loss. In fact, JD.COM did not lose money, but made a lot of money, and only invested the money in heavy assets. For example, build a strong logistics network, build a cold chain transportation system, and lay out online and offline physical stores of JD.COM O2O. On the books, JD.COM has been losing money again and again. In fact, JD.COM used the money earned to lay out its own upstream and downstream industrial chain. In that case, for JD's sake COM, overseas investors in Tokyo have no objection to JD.COM. COM's continuous losses.
Fourth, in the A-share market, all listed companies that have suffered losses for three consecutive years will have the possibility of delisting. However, although some listed companies have suffered losses year after year, they will still choose to sell several properties under the name of the company in the year of delisting, or they can come back from the dead and turn losses into profits. Although some listed companies are losing money in their main business, they own a lot of real estate or land. If they have no money, they can sell their property and land to move on. Therefore, loss does not mean bankruptcy. Many companies can survive through various means even if they lose money year after year.
Many people associate losses with bankruptcy, but this is not the case. If the company's losses are not serious, the losses can be maintained with the money earned in previous years. There are also some internet companies that have suffered losses for years, never made profits, or even have a good profit model, but as long as some people are willing to invest and others are willing to burn money in this industry, these companies are still living very well. There are also some internet companies that have lost money on their books, but in fact, the loss is very simple, as long as there is less foreign investment and subsidies. Some enterprises have been losing money for years, but they can survive by selling real estate or equity. There are many such situations. Anyway, living is the only truth.