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CHAN comes to Canton to set up his Kung-fu school. In order to build up his fame, he challenges the Kung-fu experts there to have an open fight with him. With tricks and tactics, he is so far the winner. Seeing that CHAN is abusing the martial arts artistry, SHEUNG finally agrees to have a duel with him. SHEUNG wins. FOOK is sent by his father CHAN to SHEUNG's school as an undercover agent. He incites his fellow pupils to leave SHEUNG's school to join the CHAN's. SHEUNG discovers that shortly afterwards and FOOK is driven out of door.
SHEUNG's school is celebrating its 150TH Anniversary. During the ceremony CHAN suddenly breaks in with his pupils. He challenges SHEUNG to have a competition in Dragon Dance. A spectacular display of Dragon Dance follows. CHAN wins; but, of course, with tricks. SHEUNG becomes very upset. Many, even SHEUNG's pupils, are attracted to join CHAN's quick courses. NAM, younger sister of SHEUNG's teacher, comes to Canton. Her beauty wins her the affection of both YUNG and FOOK.
