Guanghua Pharmaceutical Factory was established in March of 1939, and its site is Guaimao Village (now the second village of Liqu Town, Baota District), which is located at17km east of Yan 'an. The factory director is Liang Jinsheng, a young Vietnamese overseas Chinese physician. At the beginning of the factory, there were only 35 employees.
At the beginning, the main task of the factory was to develop frontier Chinese herbal medicines, refine all kinds of Chinese patent medicines, and study and transform traditional Chinese medicines with a long history. 1936 Guanghua Pharmaceutical Factory was renamed Guanghua Pharmaceutical Factory Cooperative. During this period, the pharmaceutical factory is divided into pharmaceutical room, research room, medicine grinding room, pill room, drying room, packaging room, refining room and other production groups.
1 941may1day, Guanghua pharmaceutical factory merged with border sanitary materials factory, which was still called Guanghua pharmaceutical factory, and the former border materials factory was a branch of the factory. The site extends to the market ditch in Annan Pass. 1In March, 947, the factory was evacuated from Yan 'an to fight against northern Shaanxi.