New prostitutes Susan, Fanny, and Chinyun are inducted into the Fragrance House brothel where they are trained in the ways of lovemaking by their veteran madam Tall Kau. Eventually all three enter circulation where Susan is crowned the top prize and becomes enamored of budding scholar Chu Chi-Ang. Fanny is jealous beyond all means and though she's bought by famous horse trader Sir Lui, she still plans her revenge on Susan.
Although Chicken does not make an appearance, Chan Ho Nam finds a new love interest in the form of Mei Ling. Meanwhile, Tung Sing returns to cause trouble again for Hung Hing, in the form of new leader Szeto Ho Nam.
The boss of the Hung Hing gang, Tian Sang, has died. Ho Nam and Hon Bun find Sangs younger brother, Yang to lead the gang. Meanwhile, Hon Bun receives news that his younger brother, a leader of the Tuen Mun gang has been assasinated. They travel to Hong Kong to settle the matter.
Tung Tung just graduated from the police academy, encountering a Vietnamnese assassin on his first day on work. Tung in order to break through obstacle in his mind decides to join SDU. Among the teammates, Coolman feels resentment toward Tung, which he doesn't understand. Later he discovers Coolman is actually his step brother. Tung actively tries to get close to Coolman, but is rejected. When training reaches its last stage, Coolman and Tung's team reencounters the Vietnamnese assassin on a deserted island.
