It is seven years later that the charity acts of San and his moving speech at the school's opening ceremony deeply touch Wah who pardons San. Shing runs into heavy debts overseas. The loan-sharks comes to ask San to repay his debts. San settles that and arranges Shing to work with Wai Bill. On the surface, Shing seems determined to reform but he is in fact waiting for the opportunity to do San away and take his place. Lung asks Han for protection money but Han refuses to pay. Lung intends to teach him a lesson. However, he finds Han and San together. Fearing that it will antagonize San, Lung dares not press Han anymore. However, when Lung's brothels are raided by the police, he puts the blame on 'San and decides to kill San and his son Chi Ho.