At the arena, Ip witnesses Liu being shot in the back of the head by Miura’s sadistic deputy, Colonel Sato, for picking up a bag of rice from a prior victory after yielding to three karateka in a second challenge.
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Deducing that Lin was killed in his fight against Miura, Ip demands a match with ten karateka at once, whom he brutally defeats. His skill arouses the interest of Miura, who insists that Ip return as soon as possible.
Refusing to accept all 10 bags of rice offered for his victory, Ip quietly picks up Liu’s blood-stained bag and gifts it to his surviving family.
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Jin Shanzhao, a highly-skilled Northern Chinese martial arts master who once defeated all the masters in Foshan except Ip, now leads a bandit gang and harasses the workers
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at a cotton mill run by Ip’s friend Chow Ching-chuen. Ip agrees to train the workers in Wing Chun for self-defence. The workers are able to stall the gang when they return long enough for
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Ip to arrive and defeat Jin and Yuan, now a part of the gang. After running Jin’s gang out of Foshan, Ip confronts Yuan and gives him a small tin that belonged to Lin after informing him of his brother’s death.
Yuan opens the tin and finds his kite inside; this motivates Yuan to leave the gang.
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