New employee Ping-Ping, a 7-year-old girl, is introduced to the factory. She meets the floor boss Uncle Zhu, who communicates entirely in motivational slogans and mild threats. He greets Ping-Ping and hands her a welcome bag with a sewing kit, a Band-Aid, and a stale fruit snack.

Corporate doubled the factories production quotas overnight. To motivated their kids to meet the quota, they have them all compete in a game-show-style challenge, with buzzers and a prize wheel! Little Ling-Ling, a 6-year-old boy who rides a tricycle to work, begins hallucinating that he's inside a claw machine.

Lunch is “temporarily suspended” to improve efficiency. Workers improvise by toasting shoe insoles over hot sewing machines. Baby Chow, the grumpiest 8-year-old in the world, starts a black-market snack ring trading gum wrappers for hot sauce packets.

Corporate sends in a social media influencer named Kenzie Krystal to “check on the vibes.” The kids scrub the factory overnight, and are forced into pastel uniforms, and Ping-Ping is told to pretend she is just an adult with a really good skincare routine. Kenzie Krystal leaves after twelve minutes, citing “weird air.”

A mysterious locked hallway called “Sector Seven” is discovered. Little Ling-Ling disappears after entering. When he returns, he's wearing a golden smock and whispering in code. The others form a secret club to investigate while pretending everything is fine for the cameras.

To increase morale, the factory launches a competition to see who can make the most mini-skirts in an hour. Ling-Ling and Ping-Ping go head-to-head, fueled by rage and energy drink packets dissolved in mop water. The winner gets a 30-second nap and a plastic crown.

Someone leaks footage of the factory to a documentary crew. Panic erupts. The workers have to rehearse a fake "fun montage" to discredit the footage, complete with choreographed laughter and a felt banner that says “HAPPY FACTORY.” Nobody can spell "factory" right.

All workers must count inventory by hand because the AI system became self-aware and tried to unionize. Tensions run high. Baby Chow tries to fake his own death by hiding inside a pile of defective cardigans. Ping-Ping finds love with a mannequin torso.

Management announces everyone will receive a "holiday bonus": a coupon for 7% off the clothes they made. The workers riot softly by rearranging all the tags to spell secret messages in Morse code. The final shot is Uncle Zhu solemnly saluting a burning pile of jeggings.