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Promising young student Chi-Hao is sent away to train under a new master in order that he may be able to win a martial arts tournament and thus prevent the local thugs from getting the power and prestige that would come were they to win it.
Two competing martial arts schools vie to win a competition, with Chao Chi-Hao going from hard-grafting novice to expert fighter able to dispense vengeance with his `Iron Fist' technique.