After winning his first competition, Takumi focuses his attention on drift racing, a sport he has unknowingly perfected while delivering tofu in his father's Toyota AE86.

While Yeung Kam Wing is trying to remove all connections between the mob and him, his actions are being carefully observed by Lau Kin Ming, who bears a personal grudge against him.

In this prequel to the original, a bloody power struggle among the Triads coincides with the 1997 handover of Hong Kong, setting up the events of the first film.