Nai-Nai teaches the kittens what their zodiac signs are and tells them the story of the Jade Emperor. He gets all twelve animals to race to determine who is the fastest, resulting in the rat reaching first place. The kittens are fascinated by Nai-Nai's dragon tales and do a play of one to show to the alley cats. Then the mice join in the performance. By the end of the tale, the alley cats are impressed.