The narrative centers around the Mirga family, a Romani lineage, and is recounted by Lutvija Belmondo Mirga, the gypsy king at the heart of the tale. The story unfolds with his grandfather Jorga, who marries his grandmother Rajka, even though she has children from her previous relationships. They eventually have a son named Ujaš, who becomes Lutvija's father. However, Ujaš is often mocked by other gypsies for failing to engage in the traditional gypsy trades. The situation becomes unbearable when his wife begins to blame him for not providing adequately, prompting Ujaš to leave in search of success, vowing to either return triumphant or disappear entirely.
After some time, Ujaš returns, transformed into a wealthy man, having amassed his fortune by smuggling various goods from Italy into Yugoslavia. He begins teaching Lutvija the ropes of the business, gifting him a remarkable canvas print of Shanghai, which leaves the young Lutvija in awe of its grandeur. During one of his business trips to Italy, Lutvija meets Amanda, a local call girl, and the two quickly fall in love, leading to their decision to marry.
Following their marriage, Lutvija, Amanda, and the entire Mirga family relocate to Prekmurje to streamline their operations. There, Lutvija acquires a vacant plot of land and dreams of establishing a gypsy village, which he names Shanghai. The village attracts numerous Romani families, ultimately drawing the attention of local authorities and law enforcement. However, Lutvija’s charm allows him to cultivate good relationships with both police and local officials, paving the way for the Mirga family to conduct business more freely. He even secures assistance from a local politician to obtain electricity for their new village.
As Lutvija and Amanda’s life progresses, they welcome a son named Dono, who shows exceptional promise as a student and a budding musical talent. This, however, causes tension within the family, for Lutvija desires Dono to continue the family business, whereas Amanda supports their son’s artistic aspirations. Following the death of Josip Broz Tito, the socio-political landscape begins to shift dramatically. The rising instability within the country and waning demand for imported goods force Lutvija to pivot his operations, leading him into the dangerous territory of smuggling arms to various ethnic factions throughout Yugoslavia.
Despite a local journalist uncovering his arms dealings, Lutvija is warned in time, and thus avoids immediate repercussions. Nevertheless, his relationship with Amanda deteriorates as Lutvija grapples with the tension between familial obligations and his illicit business pursuits. He finds himself at a crucial crossroads, tasked with the difficult decision of whether to prioritize his family or his business ventures. During this tumultuous time, he catches the attention of Dragan Kovačević, a prominent arms dealer, who proposes a partnership that Lutvija ultimately declines, preferring to operate independently.
Chaos ensues when a series of explosions devastate Shanghai, resulting in extensive property damage and the tragic loss of several villagers, including Ujaš. Suspecting retribution from Kovačević, Lutvija reaches a breaking point, confessing his crimes to the police, which leads to his arrest and a three-year prison sentence. With Lutvija incarcerated, the villagers disperse, and the once-thriving Shanghai is left in ruins.
Upon his release, Lutvija discovers that Amanda has informed him that Dono has dropped out of school and moved to Maribor, blaming Lutvija for fracturing their family. Determined to bring his son home, Lutvija is heartbroken to find that Dono is now a homeless, drug-addicted vagabond. Upon bringing him back, Lutvija witnesses Dono undergoing the harrowing process of withdrawal but ultimately supports him through recovery. With time, Dono resumes his education and embarks on a path toward a more stable life.