SHUI tries to prevent LAN from taking part in the contest. In his capacity of president of the Guangzhou Martial Arts Association, KONG declares the ban on Po Chi Lam be lifted. LAN is therefore eligible to participate. LUNG practices kung fu with LAN. KONG shows up out of the blue. In addition to sharing with them his experience of fighting with MATSUMOTO, he practices with LUNG. The father and son have patched up with each other. TOKUGAWA KAZUO demands that SHUI make sure MATSUMOTO will win. SHUI suggests approaching the person LUNG cherishes most. On the day of the contest, LAN defeats her opponent, who is famous for his Iron Sand Palm, in the first round. LUNG’s opponent is MATSUMOTO. SHUI shows LUNG FA’s earring in the middle of their fight. He is distracted and knocked out. LAN teaches kung fu on the eve of her competition. She knows very well that there is no way she can beat MATSUMOTO……