Huo remains silent and seeks comfort in a brothel, where he becomes romantically involved with a prostitute Rose (Ada Choi). Jingwu's students begin to look up to Chen as their new instructor, which incurs the jealousy of Huo Ting'en. Over the next few days, word of Chen's victory against Akutagawa spreads and Chen becomes a local celebrity in Shanghai.
It is revealed that Huo Yuanjia was poisoned and weakened before his match against Akutagawa. Chen has Huo's corpse exhumed for an autopsy against the wishes of Huo Ting'en and Jingwu's members. Chen defeats Akutagawa easily and concludes that Akutagawa is not capable of defeating his master, after which he suspects foul play in Huo Yuanjia's death. Akutagawa honorably accepts Chen's challenge. The next day, Chen goes to the Japanese dojo to challenge Ryoichi Akutagawa (Jackson Liu), the Japanese fighter who allegedly defeated Huo Yuanjia. Chen returns to Jingwu School and learns that - his master's son Huo Ting'en (Chin Siu-ho) - has become the new master of the Jingwu.
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