Shanghai New Culture Media Group Co Ltd

A playboy business tycoon, Liu Xuan, purchases the Green Gulf, a wildlife reserve, for a sea reclamation project, and uses sonar technology to get rid of the sea life in the area. Unknown to him, the Green Gulf is the home of merpeople, and the sonar has caused many of them to succumb to illness or die. Xuan's business ventures in the area are threatened when he crosses paths with the mermaid, Shan, who is sent to avenge her people.

The film is a spinoff of the original story and the two protagonists Wind and Cloud. The residents of Sword-Worshipping Manor, which houses the best sword-smiths in the world, are brutally massacred after they are alleged to be plotting a rebellion against the government. The young master of the manor, Ngou Kuet, is the only survivor. Ngou Kuet vows to finish forging the "Kuet" Sword, a task passed down by generations of his family which has yet to be completed. Ngou Kuet attacks Tin Ha Wui and battles with Wind and Cloud to obtain the blood of the Fire Kirin which can unleash the power of the sword. As the blood of the Fire Kirin runs in Wind's veins, he becomes Ngou Kuet's primary target.