SUET-YIM tempts CHEUNG's wife to commit suicide. CHEUNG comes home in time to stop her. Dawn comes and SUET-YIM slips away.

CHEUNG releases WAI and KAY, begging them to handle SUET-YIM. WAI has to lead the living dead. to their village for burial. He reminds KAY to handle SUET-YIM, the ghost.

LAU's people are robbed on their way transporting the black box. KAY witnesses the robbery and recognizes the robbers to be CHEUNG's assistants.

KAY is injured by CHEUNG who wants to kill him. KAY is rescued by LAU.

LAU learns of the trick CHEUNG has played on him, and decides for a revenge. His plan is to kidnap CHEUNG's daughter SIU-NING who studies in the town.

Count Nicotine escapes from the box and starts sucking blood everywhere.