The story begins with a group of homeless children who are taken in by the orphanage. They are forced to work long hours in the factory, but they find comfort in the Christmas tree in the factory. The tree becomes their friend and their protector, providing them with a sense of hope and warmth during the cold winter months. The children are also inspired by the Christmas carol that they hear being sung in the factory, and they dream of finding a way to escape their harsh reality and have a real Christmas.