I'm guessing you're not supposed to understand it. All the characters are from a series called Tohou. Girl with the pixie is Alice and I'm guessing its supposed to talk about Marisa (Main Tohou character) since the song is called Marisa Stole the Precious Thing.
Here's a parody of another thing created with Tohou characters. It was supposed to be a piano Teacher (Meiling in the parody) teaching a girl (Remelia) a piano scale, and the girl would play Do, Re, Fa (In this situation, Remilia would say Miling, which isn't how you pronounce her name).
Remelia DOESN'T have a voice, so you'll have to look when her bubble pops up for when she speaks.
singular.pp.fi/flash/honmeirin.swfRemilia "Hong... Miling."
*Meiling's star reads "rage"'.*
Meiling "Oh~, that's wrong. That's wrong. That's totally wrong.
Listen, listen, listen. 'Hong-Mei-ling'. This is my name.
What Miss said was 'Hong-Mi-ling'.
'Hong Meiling' and 'Hong Miling'... They're completely different.
First off, they're pronounced differently. Since they're pronounced differently naturally what's being referred to will change too.
'Hong-Mei-ling'! OK!?
*Meiling's star changes to read 'TERROR'.*
No, no, no! Please don't get angry, Miss!
I'm not upset at all. So please, retract your claws...
Miss, smile again? *Star changes to read 'Me (as in Meiling)'* Oh, good!
Try, try, Miss."
Remilia "Kurenai Misuzu."
*Star changes to read 'RAGE'.*
Meiling "No, no, no, no, no.
That is completely and totally wrong. You're doing this on purpose, aren't you!?
I'll shoot, Miss. I'll shoot beautiful barrages, really! [1]
Eeh--! Sakuya-san, Sakuya-san. Sakuya-san, cleaning stop!
The Miss won't say it! She won't say my name properly!"
Remilia "China"
Meiling "Miss, that is a country name!
Sakuya-san, Sakuya-san, cleaning stop! Room cleaning stop!
Hong Meiling, Hong Meiling, Hong Meiling, Hong Meiling,
Hong Meiling, Hong Meiling, Hong Meiling, Hong-Meiling!
Meiling, Meiling, I am Meiling, Meiling, Meiling, Hong Meiling
Meiling, Meiling, not China, Meiling, Meiling, acho!
Meiling, Meiling, call me by my name, Meiling, Meiling, Hong Meiling
Meiling, Meiling, call me properly, Meiling, Meiling, torya!
Meiling, Meiling, Uoo Meiling
(Remilia: China, China, you are China)
Meiling, Meiling, I am Meiling
(Remilia: China, China, you are China)
Meiling, Meiling, not China
(Remilia: China, China, you are China)
Meiling, Meiling, I am...
(Remilia: China, China, you are China)
*Star changes to read China*
China, China, I am China, China, China, China!
China, China, I've given up, China, China, UWAAAAAAAAAN
[1] By shooting beautiful barages, she means she's going to use her powers, which is VERY colorful.
(Meiling vs Remelia)