HUNG solemnly scolds his son YEE and his student, SO, for their creating troubles with CHIU and QUEN in the restaurant. However they again fool SHEK during the opening ceremony of SHEK's WAI CHUN MARTIAL ART SCHOOL. Their naive behaviour greatly annoys SHEK. Angrily, SHEK goes to PO CHI LAM for compensation. HUNG openly apologizes to SHEK, though, the hatred is deeply rooted in SHEK's mind. Meanwhile, a festive competition is going to be held. All concerned parties send their representatives to compete for the LUCKY BANNER whereas YEE, WING, FOON, CHIU and QUEN are among the selected representatives. During the competition, CHIU and QUEN try all dirty means where WING gets injured where trying to save YEE. After a keen contest, FOON wins the LUCKY BANNER.

FOON, WING and YEE run into SHEK on their way. SHEK, with his fists teaches the three young men a lesson and leaves. FOON is a witty and frivolous young Kung-fu player who admires HUNG's achievement in MARTIAL ARTS, however, when he requests HUNG to take him as student, he gets refused. CHING loves WING very much while her mother detests his poverty. WING's sister, YUK and CHING are good friends and both are music lovers as well. One day when YUK and CHING are on their way to the temple, they are attacked by CHOI who happens to assassinate COLONEL LAU, but his action is disrupted by Yuk unintentionally. At the critical moment, WING arrives and fights with CHOI.