Duan Ze's primordial spirit had not managed to flee before it was surrounded by a ball of flame thrown by Ning Cheng.
It was not until this moment that Duan Ze realized that Ning Cheng was not afraid of him when he followed him out of the city; rather, Ning Cheng had intended to kill him all along. Unfortunately, this realization came too late. Had he understood earlier, he might have had a chance to escape.
As the ball of flame entrapped Duan Ze's primordial spirit, Ning Cheng struck the half-bodied Duan Ze through the air with a punch and said, "By killing you today, I'm also avenging Sister Shu for the Wanderers' Sect."
Just before his death, Duan Ze finally understood why Ning Cheng was so determined to kill him; it was to avenge the Wanderers' Sect. As for who Sister Shu was, he had no idea at all.
When a ring fell into Ning Cheng's hand, Duan Ze's physical body and soul completely dissipated into nothingness.