This photo show two stages of the clown's performance.
On the left, we see the figure at the start of the routine with his head where you would expect it to be. During the next stage (not shown) the clown covers his head with the fan held in his right hand.
On the right, we see the automaton in mid-performance when the clown has lifted the front of the box with his left hand to reveal that his head has magically moved from his head to inside the box. He has also pulled the fan from in front of his face to show that his head no longer sits on his shoulders.
You can see the coin slot on the left edge of the wooden case.