Hello =)

I wanted to see if anyone knew if "Little cloth figure" was an item I could turn into an NPC for a reward. It shows up in my Goods bag and lists the name "Li Sanhe" in a quote. I received it from my Brocade box from Common Bracelet.

Thanks,

PayShi

I have one myself, but failed to find Li Sanhe so far. I'm assuming it's an NPC that will have some interaction with the cloth figure.

So far from what I can tell it just looks similar and isn't a follow-up RE. I'm assuming this because it shows up in your Goods bag vs your Task bag and I don't recall any RE that gives you an item in your Goods... however, I could be wrong.
But I had two and trashed them.