An LOI is simply an understanding between the part

An LOI is simply an understanding between the parties that has been reduced to writing. When the LOI expires, all that means is that the formal understanding no longer has legally binding status. It doesn't necessarily mean the negotiations are at an end or that there are issues in the negotiation. In this case, the Chinese group and Jerry et al seem to have proceeded with their negotiations in good faith, which has gotten them to the point you see in the press release.

Behind the scene, you can be sure the lawyers are working to embed the final (or final-ish) understanding in a writing. I am also confident that the parties will make sure their understanding is reduced to a writing (or writings) that satisfy all SEC requirements.

Deals happen between people, not between pieces of paper. A deal between people happened here.