YANG accepts SHUN’s invitation to teach at the school of kung fu. YANG enrolls WU; YI is glad. Manchu student DOR LI MOR, son of a high official, is very arrogant. He enrolls in the school of kung fu, just for the hope of winning LAN’s favor. TAI is very dissatisfied to see SHUN taking Han students. He also looks down upon YANG. TAI appoints his right-hand man, NGOK SHAU MING, to be a coach to keep an eye on YANG. LAN sees by chance YANG’s excellent kung fu technique and falls for him immediately. MOR acts as if he was the student leader at school. He is always finding faults with WU but WU chooses to swallow it all. MING is both honest and loyal; YANG appreciates his personalities a lot. YANG finds it a pity that they have very different political stands. In order to get close to WU, YI finds a job at the kitchen of the school of kung fu. She tries in vain to build good relations with YANG and MING. TONG envies WU’s freedom……