Luk, Sze Hung Tsai-sheng and Kung Sun Lan reach the secret island but find no inhabitants. Their boat drifts away and Luk and Sze Hung blame each other.

One day, the three discover two mistresses, follow them and come to a town. They then receive lavish service and later Luk meets Niu jou-tang who claims herself as Gong Yen-hong. Yue Yang come suddenly and warns Luk not to lend a hand in the matter or his live will be threatened.

Niu raises large sum of money to draw her fighters to kill Luk. Luk has no way out and is forced to go to Niu who then asks him to serve her.

Kung Sun Lan discovers the Three Friends, presses them for clues and finds out where the master of the secret island lives. Luk makes use of Yue and gets away from Niu. Then he sneaks into the master's house with Kung Sun and is surprised to find that he is in fact Priest Liu Yun.