The Hong Kong Police finds itself in a public relations crisis after a disastrous shootout and the scene of a police officer surrendering in apparent fear to the mobsters was captured and telecast by the local media. Inspector Cheung and his crew are assigned to the task of catching these mobsters, led by the intelligent and resourceful Yuen.
In the meantime, Superintendent Rebecca Fong leads an effort on the part of the Hong Kong Police to mislead the media and salvage the reputation of the police team. She sees the chance in a raid on the mobsters hiding out in an apartment, while Inspector Cheung leads his own team to search for the mobsters, with many gunfights breaking out in between.
Yuen hides out in the apartment of Yip, a bumbling taxi driver and single father of two. With the reluctant help of Yip's computer whiz son, he plays an intricate cat and mouse game with the police, releasing suspicious images of the police being defeated to the media. Superintendent Fong thwarts the effort with tricks of her own, including releasing a sumptuous packed lunch to the numerous squads on duty. After PTU officers were defeated in the first raid attempt, SDU operators were called in to flush out Yuen and his fellow mobsters.
Inspector Cheung successfully tracks down Yuen, though he is defeated only after a high-octane chase and gunfight sequence, with Fong held hostage.