Hot on the heels of his Un Certain Regard prize win at last year’s Cannes for “Black Dog,” acclaimed Chinese director Guan Hu is set to unveil his latest project at this year’s Cannes Film Market.

The Seventh Art Pictures will handle international sales for “Dong Ji Island,” an $80 million war epic based on true events from World War II. Co-directed by Guan and his longtime assistant director Fei Zhenxiang, the film follows the harrowing rescue mission of local islanders who brave treacherous seas and Japanese forces to save British prisoners of war trapped on a sinking Japanese warship mistakenly attacked near China’s easternmost waters.

The film is based on the sinking of Japanese ship “Lisbon Maru,” which was also the subject of documentary “The Sinking of the Lisbon Maru,” which was China’s entry to the Oscars’ international category.

The production boasts an A-list Chinese cast including Zhu Yilong,...