First, investors are optimistic about the products of this enterprise and are willing to invest money.
For example, Hammer Technology in Luo Yonghao has been losing money, but his company has a hammer mobile phone, and now it has launched Chat Bao software to compete with WeChat. These investors are very optimistic about these products. They know that they are losing money and continue to invest, because they believe that the projects they invest in will bring them huge benefits one day.
Second, although enterprises are losing money, they have many intangible assets.
For example, although Jingdong Logistics has been losing money in recent years, it has invested in buying land and building positions all over the country. These lands themselves are assets with great appreciation potential. Even though Jingdong Logistics seems to be losing money on the surface, it is actually a steady investment.