Ding-on is an orphaned blacksmith working in Sharp Foundry, which is run by his master, a friend of his deceased father. The master's daughter, Ling, who narrates the movie, is romantically attracted to both Ding-on and his colleague, Iron Head. One day, Ding-on and Iron Head see a monk fending off a group of thugs, who later ambush and kill him in revenge. Iron Head is so furious that he identifies himself as someone from Sharp Foundry and taunts the thugs to fight him. The master is angry when he hears of Iron Head's reckless behaviour so he punishes him. Iron Head holds a grudge against Ding-on for telling their master about the incident. He becomes even more unhappy when their master announces his decision to make Ding-on his successor.