Sure you can use entities by only using annotations. The *.hm.xml are create if you reverse engineer a existing database and can be used to forward engineer to a database. But its just a choice you make using the xml or completely annotation based.
For example:
Code:
@Entity
@Table(name="myTable", catalog="myDB")
public class myEntity {
@Id
@GeneratedValue
@Column(name = "id", nullable = false)
private Integer id;
@Column(name = "street", nullable = false)
private String street;
@Column(name = "city", nullable = false)
private String city;
public myEntity() { };
public String getStreet() {return this.street;}
public void setStreet(String street) {this.street = street;}
public String getCity() {return this.city;}
public void setCity(String street) {this.city = city;}
}
Take a look at the hibernate documentation there you can find examples of the annotation you can use.