The $15m production, which recently wrapped in mainland China, features a top Asian cast including Donnie Yen, Leon Lai and Kelly Chen. Release is tentatively scheduled for March 2008.
UFO has brought on board Andrew Loo, who heads up Hong Kong-based Initial A Entertainment with filmmaker Andrew Lau, as a distribution consultant on the film.
'The producers want to handle the sales themselves in the early stages, but are open to multi-territory offers,' explained Loo.
Produced by UFO's Claudie Chung, the film tells the story of an ancient kingdom which is laid to siege when the emperor is killed in battle and the princess mysteriously disappears.
Tony Ching is one of Hong Kong 's top action choreographers - he most recently worked on Zhang Yimou's Curse Of The Golden Flower - while Yen has action credits including Hero and Seven Swords.
Other behind-the-scenes talent includes DoP Zhao Xiaoding and production designer Chung Man-yee, who were both nominated for Oscars for House Of Flying Daggers and Curse Of The Golden Flower respectively.
Founded by Chung and Hong Kong filmmakers Eric Tsang and Peter Chan, UFO has produced films such as Comrades, Almost A Love Story and more recently Pang Ho Cheung's Men Suddenly In Black.