Okay, so first, do you know what a puppet is? It's like a toy that you can move around like you're playing with dolls, but instead of being a real person or animal, it's made out of things like wood or fabric.
Now, imagine that there's a theater, which is like a big room with a stage where people can perform plays. But instead of having real people acting on the stage, they have these puppets!
And this particular puppet theater is all about fairy tales, which are like stories with magic and usually have things like princesses and witches and talking animals. So, the puppet actors will perform plays based on these fairy tales.
But, this theater isn't just any old puppet theater - it's actually owned and run by the government of a place called a state. So, it's like a special puppet theater that has a lot of support and resources from the government.
Makes sense? Do you have any more questions?