I am a bit torn on how to answer, especially as my way of looking at an item and thinking during that process is a bit peculiar. So bear with me
Looking at the figure itself I instantly thought "Japanese import" as the unnatural seating position (a body not really matching the seat) is often (but not only) found on older Japanese and newer Chinese imports. Second thought: cheap German manufacture possible, e.g. Royal Porzellan Kutik, Höffner Sandizell, or Klette (Küps) ...
Then I read your comment on the mark and froze, because your description struck a bell. Problem was that the description sounded 'incomplete' but still brought up an image of a certain manufacturer mark - however that in turn did not really match the first impression of the figure.
After seeing the mark I knew there was something wrong. I just checked again, and the shown mark does not match any of marks used by the only manufacturer in Germany which used a similar mark. The manufacturer in question always (when using marks without hammers) used an 'M' superposed on an 'O', while the class of his hammer marks always has the 'M' and 'O' *flanking* the hammers - your mark is a mix of both versions, and that simply does not fit.
The company I am talking about is pretty well documented, so there is barely room for doubt - your item is not a documented mark of
Metzler & Ortloff from Ilmenau in Thuringia. Which means that it may (with a *very* slim chance) be an original that has simply slipped documentation -or- it's a look-alike of dubious origin. When looking at other M&O figures, there's a wide array of styles and qualities - some are far better made than yours, some are worse (especially from the era in which the factory was nationalized).
At least I can say that it is not a "hidden treasure" or extremely valuable as such items can be found in large numbers.
