The gang is celebrating Ty’s (Michael Roberts) birthday at Tams in Chinatown. The owner of the restaurant, Tan (James Hong), is a friend of Chase’s (Simon MacCorkindale). While he is there a gang puts a mark on the back door of the restaurant. The gang is run by a man named Kwan (George Cheung).
Kwan calls himself “The Dragon”, based on a nineteenth century Chinese criminal. The Dragon is an extortionist who has been threatening some of the shop owners in Chinatown. The last merchant was a jewelry store owner. Kwan told the merchant, that when you ignore the mark of the dragon, you get the breath of the dragon. When he refused to pay, his store was burnt down. Now Tan’s establishment is being threatened.
To add insult to injury, Tan’s grandson, Bobby (Rummel Mor) has joined the Dragon’s gang. When a couple of the members try to harass Tan’s granddaughter, Mary (Marion Yue), Chase follows them as a hawk and learns that the Dragon owns a crooked gambling den called The Red Serpent. Chase and Ty check it out and get beat up. Chase turns into a bull and busts his way out.
When Tan refuses to pay tribute to the Dragon his restaurant is set on fire. Tan is also set on fire. Chase gets to the restaurant in time to save Tan, but he is injured in the fire. Now that everyone is too afraid to be a witness to the attack on Tan it is up to Chase to do battle against the Dragon.
Shape shifting changes include the panther, hawk and a bull. In the laboratory enclosures are a lion, a cougar, the lion cubs, and a wolf. A vulture is in the cage.