The film is set in and around the small city of Fenyang, Shanxi province, China (Jia's birthplace), from the end of the 1970s to the beginning of the 1990s.

[1] The film has been called the masterpiece of the entire "Sixth Generation" movement of Chinese cinema,[2] although the movie has never been publicly released in China due to its being made outside of official state approval.

The rebellious Cui clashes with his family and elders, and envies Zhang, whose visits to his aunt in Guangzhou allow him to procure consumer goods in the wake of China's economic liberalization policies.

Cui, heartbroken and filled with wanderlust, remains with the troupe as they go on tour under new management, as do Zhang and Zhong; Yin chooses to stay behind.

Out of desperation, Sanming takes a poorly-paid job at an unregulated coal mine for Wenying to afford an increasingly expensive university education.

Before the troupe leaves, Sanming hands a meager five yuan to Cui, instructing him to give it to Wenying and to tell her to never return.

They return to Fenyang; Cui hands over ten yuan to Wenying, who becomes upset about her brother's lack of prospects, while Zhong cuts off contact from Zhang and the rest of the troupe.

They struggle to land permits for shows and are reduced to performing on the side of highways, travelling as far as Inner Mongolia before turning back.