As soon as LAN has returned to Guangzhou she heads straight to Po Chi Lam to express her feelings for HUNG. PING thinks it is unwise for her to have agreed to marry HUNG, who is old enough to be her father. HANG has invited the mayor to the opening of the Lui’s Martial Arts School. KONG is very excited. Members of the Guangzhou Martial Arts Association have come to create trouble. KONG beats them one by one. Meanwhile, SHUI offers his congratulations to KONG with a signboard that reads “Guangzhou Number One”. He also praises KONG in front of the crowd. KONG sees SHUI being beaten by the hooligans. KONG sympathizes with his fate and decides to employ him. A matchmaker has brought gifts to LAN’s house. It turns out PING is marrying LAN to the son of a grocery owner. The masters of different martial arts schools get together. SHUI appears uninvited to invite them to meet up with KONG.