Lok, the recently elected chairman of the Hong Kong triad Wo Lin Shing, grapples with the possibility of breaking tradition by seeking re-election for a second term. During this tumultuous period, he meets his triad godsons—Big-Head, Jet, Jimmy, Kun, and Mr. So. Kun, fresh out of prison after the events of the previous film, boldly announces his candidacy for the chairman position. However, when he seeks Lok's support, Lok declines and instead offers backing to Jet in exchange for a deadly favor, despite Jet's contentious reputation among the triad elders due to his reckless nature.
The triad elders have their eyes set on Jimmy as a viable candidate, recognizing his success in business. Yet, Jimmy hesitates to run as he aims to transition his operations in Mainland China from illegitimate dealings to a legitimate enterprise, fearing that involvement in triad activities might jeopardize his progress. To strengthen his position, Jimmy decides to promote fellow triad member Lik to work closely with him. However, during a trip to Mainland China meant to bribe a local official, both Jimmy and Lik find themselves arrested. They are saved by high-ranking policeman Xi, who makes it clear that Jimmy's business prospects in Mainland China hinge on him becoming the next chairman of Wo Lin Shing while cooperating with the Mainland police and demonstrating patriotic loyalty.
As the election heats up, Lok pleads with Kun during a fishing trip to withdraw from the race, asking for his alliance in support of Lok’s second term, while promising that Kun would have his turn in the following election. Kun proposes an intriguing counter-offer: co-chairmanship with Lok. However, neither is willing to step down, leading to a nearly violent confrontation. Interventions prevent the clash, and the two eventually agree to first eliminate Jimmy from contention. In a desperate bid to maintain his power, Jimmy hires hitman Bo and, after warning from the elders, has Lik murdered, suspecting him to be a police informant.
Tensions rise as Kun executes a daring operation, kidnapping Mr. Kwok, Jimmy's financial backer, and locking him in a coffin alongside Big-Head. Lok threatens Mr. Kwok's life unless Jimmy withdraws from the chairmanship race, but Jimmy stands firm. In a bold move, Lok conceals the Dragonhead Baton, the emblem of leadership authority, in Mainland China. However, under pressure from triad elder Uncle Teng, who predicts Jimmy’s looming ascendency, Lok takes drastic measures, committing murder to retain his grip on power, sending Jet to kill Jimmy next.
Jet's unsettling confrontation with Jimmy and his wife leads to unexpected twists, revealing that Jet is being manipulated. Jimmy and Bo plot to turn Lok’s own men against him while Kun makes a faltering attempt to assassinate Jimmy. In retaliation, Bo rescues the coffin and delivers it to Jimmy, culminating in dramatic conflict. When Kun's actions betray him, the fallout leads him to escape Hong Kong while another tragedy unfolds in Lok's personal life with his son drifting away into dangerous territory.
Ultimately, the bitter rivalry costs Lok his life at the hands of those he once trusted, and as Jimmy ascends to chairmanship, a shadow looms over his aspirations. He vows to step aside in two years but soon finds himself tangled in complex relationships fraught with betrayal and loyalty. He strives to mend his business path in Mainland China with the approval of Xi, who ominously hands him the Dragonhead Baton seized from Lok's ally. A desperate desire prompts Jimmy onto a path of violence against Xi, who remains unyielding, merely expressing gratitude for Jimmy's anticipated cooperation.
As the story unfolds, the fate of Jimmy is intertwined with his family's future, as unveiled with his wife’s unexpected pregnancy, compelling him to ponder the legacy he is about to create, perhaps outside the treacherous world of triads. The film presents a gripping narrative of ambition, loyalty, and the ever-there consequences of choice amid an unwavering quest for power.
