Embroidered red dragon on black background. The First World War divisional flash of the 38th (Welsh) Divison. The badge was only worn on the left sleeve (Gray, p. 27).
Own work, vectorized from  reference image located at: 


This photograph INS 4903 comes from the collections of the Imperial War Museums.



Gray, Randal (2005)       Kaiserschlacht 1918: The Final German Offensive, Oxford:  Osprey Publishing  ISBN:  1-855-32157-2.
FOX 52