Editor's note. This is the third part of a series. Here is Part 1 and Part 2.

By Zack Buckley and Glen Bradford

China Medicine ( CHME.OB) is trading at an adjusted price-to-earnings ratio of 7. It recently took a big hit after the release of its 10-K, which allows investors to pick up shares of a great company on the cheap. China Medicine generated $17 million in 2009, and is only a $65 million company. China Medicine is waiting on government approval of its proprietary drug rADTZ which should substantially contribute to future revenue growth.

Yongye International ( YONG) continues raising revenue guidance, with 2010 net income expected to increase between 60% to 72%, and has issued the expectation of 50% compounded annual revenue growth over the next three years. Its recent count of branded stores is 10,000, with the goal at year-end to be 20,000. There are discussions that by the end of the decade Yongye may have 100,000 branded stores.

New Energy Systems ( NEWN.OB) has been reaffirming guidance at between $5.3 to $6 million. Since it has reaffirmed this number on three separate occasions we can assume it will be close to accurate. The company projects 2010 per-share earnings of 1.23, which makes a low P/E of only 6.1 times earnings, even though this incorporates a tripling of net income. With return on equity of 60% and profit margins at 26%, this company has high returns on capital and strong margins. Average return on equity in American business is 12% -- anything above 20% is spectacular.

Orient Paper ( ONP) is a rapidly growing company with a P/E of 8 in a great industry. It makes paper, it is very simple and understandable which we love. Orient Paper achieved a return on equity of 22%. It expects adjusted EPS of $1.21, which is about 16% growth for 2010.

China Ceramics ( CCLTF) is one of those companies that makes you proud. Take a look at its super 8-K issued last November and if you're perceptive you'll realize how truly innovative the company's structuring is. I firmly believe that more companies should go public in this manner. Basically, if the company performs, they get over $100 million through its warrants being cashed in; the warrants trade as CCLWF.