A holding company is like a parent company that owns other companies, kinda like how your mom and dad are in charge of you and your siblings. The holding company doesn't actually DO anything or make anything, it just owns parts of other companies that do things like making toys or selling clothes or building houses.
The holding company makes money by owning the other companies and getting a share of the profits they make. Just like how your parents might get money from their jobs or investments. Sometimes the holding company can even help the other companies it owns by giving them advice or resources.
Think of it like if your parents owned different toy stores, but instead of them running around from store to store all day, they just own the stores and let other people manage them. That way, they can make money from all the stores without having to do all the work themselves. That's kinda how a holding company works!