SHENZHEN, China, March 28 (Reuters) - China's Huawei is

expected to claim triumph over U.S. sanctions at its upcoming

annual results, bolstered by its software push, progress in

chips and booming smart-driving technology business that has

helped it move out of "survival mode".

The company is set to confirm that it took 860 billion yuan

($118 billion) in revenues last year, just shy of its 2020 peak

of 891 billion yuan, before chip stockpiles dwindled and U.S.

restrictions cut consumer business revenues in half. Its

chairman disclosed its 2024 revenue in February.

It will also report full-year profit. In October, it posted

a 13.7% drop in nine-month net profit.

Huawei's executives have previously said Washington's moves

pushed the company into "survival mode", driving it to explore

new business lines that have largely involved creating products

that can serve as alternatives to Western technology and

partnering with local Chinese authorities and government-backed

firms.

The company has in past months struck a more confident tone,

with founder Ren Zhengfei telling Chinese President Xi Jinping

in May that concerns China had about a lack of homegrown chips

and operating systems had eased.

Huawei has not disclosed in detail its revenue drivers, but

has said that its consumer business has returned to growth while

its foray into autos has developed rapidly.

The company likely shipped over 45 million phones in 2024,

up by 25% or more on a year earlier, though yield rates on chips

remain a constraint, according to consultancy Isaiah Research.

"Huawei has already shown incredible resilience in the face

of this national state-led effort, and this process has arguably

forced Chinese firms across the IT stack to become more

innovative and collaborative," said Paul Triolo, a partner at

DGA-Albright Stonebridge Group.

"This is one of the legacies of Huawei's re-emergence as a

technology powerhouse."

Huawei declined to comment.

In the wake of U.S. sanctions, Huawei moved into exploring

areas such as building 5G infrastructure for mines and supplying

energy storage systems to data centres.

Cut off from Google's Android and Oracle, it built its own

operating system HarmonyOS, which it says is running on over a

billion devices, as well as an internal software management

system it calls 'MetaERP'.

Banned from using U.S. semiconductor technology, it has

created its own advanced chips including ones that compete with

top artificial intelligence chipmaker Nvidia's ( NVDA )

products.

The company has also become a prominent supplier of advanced

autonomous driving technology, working with state-owned

automakers to revive themselves as viable electric vehicle

makers.

Huawei has worked with Dongfeng Motor ( DNFGF )-backed Seres to sell

Aito-branded cars, with sales more than tripling last year.

Its best-selling models M7 and M9 are equipped with Huawei's

advanced driver assistance systems and sold in Huawei's

showrooms nationwide.

There are similar projects with Chery, BAIC, JAC Group and

SAIC Group.

Going forward, the company has said it wants to integrate

artificial intelligence into its industrial communications

services and to build out its software systems on connected

devices, according to state media.

Huawei has also signaled it intends to compete more

aggressively in overseas markets for its smartphones, having

launched its foldable Mate XT smartphone in Malaysia in February

in a glitzy event.

Without full access to Android it is unlikely to regain its

former position in Western consumer markets, though its data

infrastructure presence has grown in areas such as the Middle

East, Triolo said.

"Huawei's international presence will be more of a patchwork

affair, but in some areas, like an alternative AI stack, it

could eventually dominate in key markets."

($1 = 7.2652 Chinese yuan renminbi)

(Reporting by David Kirton in Shenzhen and Li Qiaoyi in

Beijing; Editing by Brenda Goh and Lincoln Feast.)