As an orthodox cultivator, isn't it perfectly reasonable for Xiao Xu to hold an Emperor's Banner in his left hand, a White Bone Banner in his right, and a Blood God Pearl in his mouth?
We're all about wasting absolutely nothing: souls go into the Emperor's Banner, bones are added to the White Bone Banner, and flesh and blood are refined into the Blood God Pearl. Then he laughs, “Heh heh heh.”
What? You want to know why Xiao Xu, an orthodox cultivator, is getting more and more sinister?
Xiao Xu can only reply: It all goes back to that incident at the beginning of the story.
When Xiao Xu first set out on the path of cultivation, he was naive and ignorant. He was kidnapped and taken in as a disciple of the Soul Refining Sect. It didn't sound like a good sect, but Xiao Xu wasn't picky. As long as he could cultivate, anywhere would do. Orthodox or heretical, as long as they didn't refine him, he figured the sect was livable.
But one day, Xiao Xu asked, “Wait, Sect Leader, why is your Emperor's Banner belching black smoke?”
The Sect Leader replied angrily, “Insolence! That's not black smoke, it's primordial purple energy. Now that you've seen it, I can't let you live. Into my soul banner you go!”